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if they weighted (fully) by float (perhaps the average float from the trailing 90 days to the re-balance) it would not be as easy to game. The Nasdaq is accoun
by lokar 7mo ago
if they weighted (fully) by float (perhaps the average float from the trailing 90 days to the re-balance) it would not be as easy to game. The Nasdaq is accounting for float, but not completely.
- dmoy 7mo agoAren't basically all the huge serious index funds float weighted?
- lokar 7mo agoMatt Levine wrote (uh, yesterday?) that the Nasdaq 100 was adding it (not a full linear weighting....) right now to accommodate this scam.
- dbt00 7mo agoYeah, the OEX is a more serious index for more serious people.
- dmoy 7mo agoOk fair, I forgot that QQQ is as big as it is. Edit: wait, but QQQ is float adjusted? What are the biggest not-float-adjusted index funds?
- lokar 7mo agoI don't know about the funds, but it's really about the index. Both for the index funds that use the index, and the active mutual funds and index funds benchmark to that index.
- dmoy 7mo agoWhy is it really about the index though, if the index fund doesn't track that public index? If the index fund is tracking some proxy that is float weighted, isn't that what matters? At least when it comes to people's money.
- nighthawk454 7mo agoThey are, but SpaceX is trying to get rules changed. They want the index to buy at a multiple of the float, so they release say 5% but get bought as if they had released 15% float. They also normally wouldn't be eligible for index inclusion for ~1 year, after showing multiple quarters of good stewardship, etc. They're trying to bypass all that
- t0mas88 7mo agoYes, the MSCI World and FTSE World that many broad ETFs and funds track are float weighted.