If you're indexing using just the S&P500 you're arguably making a quite directional bet on big established companies over the rest of the market already. Much b

If you're indexing using just the S&P500 you're arguably making a quite directional bet on big established companies over the rest of the market already. Much broader indexes are in common usage. For someone indexing with those the fact that someone tried to arbitrage Tesla's entrance into the S&P500 and failed just looks like any other market movement. There are people on both sides of that bet, some won, some lost, and you get the average return between them both.