> Everyone in the world can front-run those giant trades This is a perennial quant strategy. Buy the names likely to be included into the index, short those th

> Everyone in the world can front-run those giant trades This is a perennial quant strategy. Buy the names likely to be included into the index, short those that are likely to be dropped. And the answer is that arbitrage has mostly wiped out the premium. The average gain (loss) on being added (removed) to the index has steadily decreased since the 1990s[1]. [1] https://repository.upenn.edu/cgi/viewcontent.cgi?article=1020&context=joseph_wharton_scholars https://repository.upenn.edu/cgi/viewcontent.cgi?article=102...