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Depending on the voting structure of shares, many funds will pass over a company. SNAP, for example, is only in 20-some ETFs: https://www.etfchannel.com/finder/
by JMTQp8lwXL 8y ago
Depending on the voting structure of shares, many funds will pass over a company. SNAP, for example, is only in 20-some ETFs: https://www.etfchannel.com/finder/?a=etfsholding&symbol=SNAP https://www.etfchannel.com/finder/?a=etfsholding&symbol=SNAP
Most people investing in Mutual Funds and ETFs aren't getting exposure to SNAP. That may be the case with LYFT and Uber as well.
- leoromanovsky 8y agoIt's the case of SNAP and LYFT because they have ownership structures which don't allow mutual funds to invest in them. Uber has a normal structure; any fund that mirrors the market will purchase the stock. https://www.recode.net/2019/4/11/18302102/ipo-voting-multi-dual-stock-lyft-pinterest https://www.recode.net/2019/4/11/18302102/ipo-voting-multi-d...
- JMTQp8lwXL 8y ago> Back in 2017, the private ride-hailing company got rid of its dual-class voting structure that had enabled its previous CEO, Travis Kalanick, to make a lot of bad decisions. What an interesting takeaway. Certainly bodes well for the average Uber investor, but really it only happened because of Travis.
- mckenna 8y agoThanks for that link. FB has a dual-class structure, but its owned by all major ETFs: https://www.etfchannel.com/etfs/?symbol=FB https://www.etfchannel.com/etfs/?symbol=FB If UBER gets into indices, that would be scamming hard earned 401k dollars of unsuspecting ordinary folks. Sigh... More hate for Silicon Valley when folks figure out
- JMTQp8lwXL 8y agoMutual fund and ETF investors have historically done quite well with FB.