Hacker News new | past | comments | ask | show | jobs | submit
konaraddi | on: Nasdaq's Shame
I think it’d be a rinse and repeat of the line of thinking for VT but more exposure than VT.

From VIFAX fund’s description on vanguard:

> The fund offers exposure to 500 of the largest U.S. companies

krackers | parent
Based on the comment from [1] it seems like the issue with nasdaq is that anyone tracking it is contractually obligated to include spacex? What about for other funds? VIFAX description says

>The Global Equity Index Management team applies disciplined portfolio construction and efficient trading techniques designed to help minimize tracking error and maintain close alignment with benchmark characteristics [of S&P 500].

So given that this only affects NASDAQ i'm guessing they aren't affected? And even if S&p 500 started to play the same games, why can't their supposedly disciplined "Global Equity Index Management team" simply opt not to play along with these shenanigans? Or if they simply do mechanically track the s&p 500, what exactly is the "management fee" paying for?

[1] https://news.ycombinator.com/item?id=47394355

konaraddi | root | parent
There’s a lot to address here but in short: VFIAX is an index fund, it tracks the S&P500 index, it’s not actively managed, SpaceX will likely be in the S&P500, so my comment around VT applies to VFIAX (as far as the question of exposure is concerned) but to a greater extent than VT (see VT’s composition vs VFIAX’s composition).

Obligatory not financial advice, I’m not an expert, don’t make any financial decisions based on hacker news comments, etc