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Wow! This comment inspired me to dig deeper. After 20+ years in the market, today I learned: "The S&P 500 is a float-adjusted, market-capitalization-weighted i
by tliptay 6mo ago
Wow! This comment inspired me to dig deeper.
After 20+ years in the market, today I learned: "The S&P 500 is a float-adjusted, market-capitalization-weighted index."
So presumably an S&P 500 index fund is not disadvantaged, since it is tracking a float-adjusted index, i.e. the weight of SpaceX will be tiny if its float is tiny.
Or, is there a nuance that I'm missing?
- gruez 6mo ago>So presumably an S&P 500 index fund is not disadvantaged, since it is tracking a float-adjusted index, i.e. the weight of SpaceX will be tiny if its float is tiny. Nasdaq already caved. FTSE and S&P are supposedly considering it. https://www.economist.com/leaders/2026/03/31/index-providers-should-not-bend-the-rules-for-elon-musk https://www.economist.com/leaders/2026/03/31/index-providers...
- deleted 6mo ago[deleted]
- AlotOfReading 6mo agoLow float, large cap companies will get a 5x multiplier.
- Zigurd 6mo agoThe SpaceX float is small in proportion to a ridonculous valuation.