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False! SNAP has been explicitly excluded from the S&P500 index for exactly this reason[0]. I'm not sure if "whole market" passive funds would include it or not.
by kspaans 9y ago
False! SNAP has been explicitly excluded from the S&P500 index for exactly this reason[0]. I'm not sure if "whole market" passive funds would include it or not. At the very least VTI has 0.03% of assets in SNAP[1]. Not much to worry about.
0 - https://uk.reuters.com/article/us-snap-s-p-idUKKBN1AH2RV https://uk.reuters.com/article/us-snap-s-p-idUKKBN1AH2RV
1 - https://www.etfchannel.com/symbol/snap/ https://www.etfchannel.com/symbol/snap/
- MR4D 9y agoYou’re confusing the maintainer of the index’s ( Standard & Poors) with the implementation (Vanguard). If S&P puts a company in, Vanguard will buy the shares. Not doing so could cause problems, including lawsuits.
- kspaans 9y agoYes, and as I said the S&P500 index excludes companies like Snapchat with the founder-has-most-votes trick. I suppose the real issue here is how much money goes into which indices, and which ones exclude companies like these.