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> Everyone picking the S&P 500 over its competitors chooses that. I'm fairly confident most people deciding to allocate to s&p trackers have no idea about rule
by maest 4mo ago
> Everyone picking the S&P 500 over its competitors chooses that.
I'm fairly confident most people deciding to allocate to s&p trackers have no idea about rules-based vs committee-based governance. They just pick the default. And that default can quickly change if the S&P starts making weird/unpopular decisions in a highly publicized situation.
- JumpCrisscross 4mo ago> most people deciding to allocate to s&p trackers have no idea about rules-based vs committee-based governance. They just pick the default A lot of retail goes into S&P lookalikes. And at the end of the day, they've consistently picked one over the other. > that default can quickly change if the S&P starts making weird/unpopular decisions in a highly publicized situation Unlikely. Nobody has dropped NASDAQ 100-tracking funds. If anything, these guys will see long-term net inflows due to this move. S&P probably would have if they’d changed rules—this was an econometric, not business, decision.