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That's the assumption yes, and it's backed up by the numbers. Here is one: https://www.mckinsey.com/featured-insights/sustainable-inclusive-growth/chart-of-the-
by TheAlchemist 2y ago
That's the assumption yes, and it's backed up by the numbers. Here is one:
https://www.mckinsey.com/featured-insights/sustainable-inclusive-growth/chart-of-the-day/the-ephemeral-effect-of-stock-index-inclusion https://www.mckinsey.com/featured-insights/sustainable-inclu...
It touches an interesting topic that is a bit overlooked by people not working in trading. Actually, a lot of very profitable part of trading has nothing to do with anticipating if stocks will go up or down.
But there is a lot of money to be made finding situations like this - those ETFs and funds are pretty much required at some point to buy the stocks being included in the index - so that gives a very valuable and factual information (as opposed to opinion whether a stock will go up or down).
- klipt 2y agoWhich is why it's better to invest in total market ETFs. Those are harder to game (they still have to invest in IPOs, but those are a much smaller part of the total than the bottom of S&P 500)