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If you don't like $TSLA being in your various index funds, isn't it relatively trivial to concoct a short position that offsets your net shares owned? All the
by rogerrogerr 9mo ago
If you don't like $TSLA being in your various index funds, isn't it relatively trivial to concoct a short position that offsets your net shares owned?
All the indexes publish what the index is comprised of, I bet if you told ${AI} all your positions it would go figure out what your net $TSLA position is.
I think $TSLA valuation is insane, but I've seen what happens to people who short it...
- mw1 9mo agoIt’s not trivial to concoct a short position in TSLA to offset your index holdings. For one, it has large borrowing costs. You already admit that short sellers haven’t fared well, and shorting over a long time period can be very costly. Concocting a short position to offset one’s long-term index holdings requires being fairly accurate with timing and is very different than just wishing it wasn’t in there because you imagine that eventually the bill on that will come due, even if it’s years down the line. If I’m wrong, I’d love to see a cheap way to do it over a 5-10 year period.
- ctchocula 9mo agoDirect indexing will soon be able to provide that functionality of giving you S&P 500 stocks minus A, B and C companies you don't want to hold. However, cheap and reliable direct indexing brokerages aren't out there yet. Hopefully more competitors show up and help lower the prices for everyone.