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How does this replacement affect the index itself, does anybody know? If the weights of the company dropped and company included are the same, is that enough th
by bdjsiqoocwk 2y ago
How does this replacement affect the index itself, does anybody know? If the weights of the company dropped and company included are the same, is that enough that the index's fundamental value doesn't move?
- killingtime74 2y agoNot sure understand your question. The new companies are on the up and the old ones have fallen below inclusion threshold. If they didn't do replacement you would have companies bigger outside the index than the ones inside.
- Ekaros 2y agoWeirdly it might be possible for there to be bigger company outside than inside. If they did not make consistent profit, but still were maybe thinly traded and looked growing like Nvidia for example while burning money on investing like Amazon...