5 ms·

Total market indexes and target date funds will include this and SpaceX on float adjusted basis I believe. The blast radius is much larger than funds that trac

• chasd00 4mo ago
  But isn't that what "total market" means? I don't see how if you invest in a total market fund you could declare "except for SpaceX, Anthropic and OpenAI". Why is it so bad for these accounts to be invested in these companies anyway? Seems pretty typical, i bet all kinds of companies are added to total market indexes each year.
  • alemanek 4mo ago
    Until recently companies that IPOed weren’t immediately added to the major indexes so there was a longer period for price discovery. This year that changed; so you have retirement funds that typically are more conservative acting as exit liquidity for these massive IPOs. I would have less of an issue if the inclusion in major indexes was delayed 6-12months but we are looking at inclusion within like 5 days for some of these indexes.
    • tonfa 4mo ago
      The float will get bigger as you wait tho, since it's common for early investors to be locked for e.g. 6 months. You can argue it's better to smooth the entry as float gets unlocked rather than being front run by all the hedge funds in a single day on a massive capitalization.
      • ojbyrne 4mo ago
        The lockup periods are also being fiddled with: https://finance.yahoo.com/markets/stocks/articles/spacex-ipo-lock-structure-lets-140626263.html https://finance.yahoo.com/markets/stocks/articles/spacex-ipo...