People often tell me they only hold an index fund, so they never have to worry about hot new share issues like SpaceX. That's mostly true, but the rules quietly changed this year, and SpaceX is probab
Interesting to see what happens I already have a chunk of Space X in Scottish mortgage investment trust which has been driving the price back up again !
Maybe I missed this, but why do the index funds want to relax the rules? Why do they care what the actual companies are inside their funds, so long as they track a benchmark?
S&P Dow Jones Indices confirmed that it will strictly maintain its traditional index eligibility rules, effectively blocking any fast-tracked or expedited entry for mega-cap Initial Public Offerings (IPOs) like SpaceX
The trend and the abuse is the problem. After SpaceX - if it works it well for them - there absolutely will be others. Passive funds have been lauded as this best investment for years now - and here come the predators.
S&P has already ruled out changing its rules to fast track SpaceX. The earliest it could be included is second half of 2027, or more likely 2028, assuming it meets the profitability requirement AND does another IPO to meet the public float requirement, which seems unlikely.
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What do you think about using your fun portfolio to short SPCX to offset your index fund holdings? Or to purchase puts?
Great idea on shifting to global, small, or mid-cap indices.
MSCI 😡
S&P 👏
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