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This IPO marks and inflection point where a fund that tracks whole market value shifts in definition, because of the forced rush value nature of the rule change
by simonjgreen 4mo ago
This IPO marks and inflection point where a fund that tracks whole market value shifts in definition, because of the forced rush value nature of the rule changes.
If the fast entry rule changes hadn’t happened I would agree with you entirely.
- chii 4mo agoThe rule change where nasdaq adds a weighting factor to spacex's float is what causes distortions - it artificially increases the size of spacex's cap weight without actually having more shares. Fortunately, this only affects indices that follow nasdaq, and from what i know, no other index is following this. That means it's "safe" to purchase a globally diversified, cap weighted index fund (safe as in the float isn't manipulated). People talk of the demise of passive investing due to this, but most of the commentary fail to mention it's a specific, nasdaq thing and not a general change.
- deleted 4mo ago[deleted]
- l23k4 4mo ago[flagged]