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Is it still being prematurely included in the major index funds?
by echelon 4mo ago
Is it still being prematurely included in the major index funds?
- winfredJa 4mo agoyes, in few weeks.unfortunately the stock will be back from this slump
- androiddrew 4mo agoUmmm probably not. Lock ups are going to dump far more stock into the market.
- kurthr 4mo agoBut they are going to coincide lockups with the release of additional stock float from 5% up to 20% of the total "valuation" with a 3x QQQ multiplier so that stock indexes will treat them as 60% float even though 2/3rds of those shares are unavailable. Thus they guarantee that even more shares must be bought by tracking ETFs and institutional buyers. Everybody (that already owns pre-IPO shares) wins!
- kirubakaran 4mo agoBut that's not a secret, and therefore already priced in, right?
- JumpCrisscross 4mo agoIt's also a tiny effect given the total-market funds buy small amounts of each company, and the NASDAQ 100 isn't particularly big. If S&P had changed its rules for the S&P 500, there would have been an effect. In the end, the drama was almost entirely a spectacle for finance influencers and their viewers.
- kurthr 4mo agoQQQ is the largest of the Nasdaq100 tracking funds. It's only about 1%, increasing to 4% of the QQQ, which is ~$350B in size. So it's only $3.5B of forced buying or a little less that 5% (of $75B). For the second float would be and additional ~$14B, again about 5%.
- opinion-is-bad 4mo agoOnly the Nasdaq, which is an intentionally aggressive index. The S&P rejected all proposals.