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After IPO, large index funds are picking up these de-SPAC companies. So, I think its not just "greedy gamblers" who are exposed to losses - conservatively inves
by ac29 4y ago
After IPO, large index funds are picking up these de-SPAC companies. So, I think its not just "greedy gamblers" who are exposed to losses - conservatively invested retirees are taking losses too.
- stickfigure 4y agoWhat large index funds, what companies? Do you have any examples?
- yareally 4y agoThe Russell 2000 (IWM). Pretty big index. https://finance.yahoo.com/quote/IWM/holdings/ https://finance.yahoo.com/quote/IWM/holdings/
- rajup 4y agoIf it's a pretty big index it's unlikely a company going bust here or there is a big deal.
- stickfigure 4y agoThat's half the answer but still not enough information. What de-SPAC companies are part of that index? What percentage of the index do they represent?
- ac29 4y agoVTI (Vanguard's Total US Market) owns SPCE, CLOV, and SOFI (the only three I looked up). All three currently trade below IPO price.
- systemvoltage 4y agoThen let’s change the way these funds built their portfolios. More regulation isn’t the right answer.
- mccorrinall 4y agoUh, then they shouldn’t pick up squoze stocks like AMC and GME either? I don’t agree.