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lovich | on: Can the stockmarket swallow Anthropic, SpaceX and OpenAI?
But you think they’ll adopt some of these proposals that are in the benefit of these companies IPOing at the expense of large funds?
throwaway2037 | parent | next

    > at the expense of large funds
I don't understand what you wrote. It sounds like you are saying this is a zero-sum game of winners and losers -- SpaceX "wins" and the tracking funds "lose". The ETFs and mutual funds that track these indices don't care what stocks are added or removed. They have one job: To track the index as closely as possible with the lowest cost.
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sersi | parent | next
If the S&P adopt those rules would there be any index fund that is S&P without the new rules?
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thephyber | root | parent | next
An index fund like the S&P500 is not the S&P500. It is stuck competing in a world of low margin pain.

I sincerely hope S&P and Nasdaq rollback the SpaceX-targeted changes, but unfortunately I seriously doubt it.

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JumpCrisscross | parent
> they’ll adopt some of these proposals that are in the benefit of these companies IPOing at the expense of large funds?

Yes. And I see the argument for it. It’s hard to claim you represent the market if trillions of dollars are outside it for no reason other than newness or capital-structure weirdness. (I agree with excluding unprofitable companies.)

thephyber | root | parent | next
Moving the goalposts of an index fund for one or 3 IPOs puts the reputation of S&P and Nasdaq in question. The comments in this thread make that clear.
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