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S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

arstechnica.com

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Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#101

Post by jjav »

zeroonetwothree wrote: post #14
zippyman55 wrote: post #3

Yep!! Respect to them. I was planning to move to an equal weight index but this gives me a little more time to evaluate options.

They weight by free float so it would been something like 0.3%. Hardly the end of the world

> They weight by free float so it would been something like 0.3%. Hardly the end of the world

That's one way to look at it. At a personal level, it's a small sliver and if it were to drop, its influence on your balance isn't much. So that's true.

Another way to look at it is that with ~200 million people owning index funds, all their funds balances together, even a tiny fraction of a percent is a massive amount of money being force-fed into spacex, which is to say, mostly into Elon's pocket (since he owns vast majority of the shares).

So why is it fair to change the rules to give this massive wealth transfer to Musk, who certainly does not need the extra money?

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#103

Post by Saline9515 »

frozenseven wrote: post #96
LinguaBrowse wrote: post #42

Earlier quoted context omitted.

I’ve moved my S&P 500 investments to the Equal Weight index to reduce my exposure to AI. Quite aside from SpaceX, I think the large-cap tech companies are making some uncomfortably large bets on AI and any major upset could cause a domino effect. But as so many ETFs have a significant stake in large-cap US tech stocks (the top 10 holdings of the iShares MSCI World ETF is entirely comprised US Big Tech, making up 20%…

[flagged]

Have you heard of the dot com bubble?

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#104

Post by asdfaoeu »

frozenseven wrote: post #96
LinguaBrowse wrote: post #42

Earlier quoted context omitted.

I’ve moved my S&P 500 investments to the Equal Weight index to reduce my exposure to AI. Quite aside from SpaceX, I think the large-cap tech companies are making some uncomfortably large bets on AI and any major upset could cause a domino effect. But as so many ETFs have a significant stake in large-cap US tech stocks (the top 10 holdings of the iShares MSCI World ETF is entirely comprised US Big Tech, making up 20%…

[flagged]

AI can still have a massive impact while these three companies go nowhere.

Same as the dotcom and same as the railroads.

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#105

Post by sscarduzio »

zhivota wrote: post #30

Big relief for me. As a passive investor, I want the indices to follow the same passive strategy they always have, and specifically not make exceptions for specific companies like SpaceX wanted. Plenty of ways to get exposure to that stock without it going into the indices it is not qualified for.

I agree, but… Plenty? Really?

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#107

Post by Wololooo »

frozenseven wrote: post #96
LinguaBrowse wrote: post #42

Earlier quoted context omitted.

I’ve moved my S&P 500 investments to the Equal Weight index to reduce my exposure to AI. Quite aside from SpaceX, I think the large-cap tech companies are making some uncomfortably large bets on AI and any major upset could cause a domino effect. But as so many ETFs have a significant stake in large-cap US tech stocks (the top 10 holdings of the iShares MSCI World ETF is entirely comprised US Big Tech, making up 20%…

[flagged]

People are doing so because the math is not mathing.

Assuming that all the claims are true, this would lead to a collapse under its own weight, because at that point, supposedly, most people won't be needed in the jobs they currently occupy.

Assuming the claims aren't true, there will be a reckoning where all the glitter thrown will hit the ground and people that invested would like to have their marbles back at whatever the cost.

I'd be betting on the latter rather than the former. BECAUSE all those companies are RUSHING for an IPO because none of them want to be left with the bag.

Just for the sake of comparison and to put things in perspective, just for the spaceX situation, running a datacenter is no easy task and require significant maintenance and supporting infrastructure, now you're going to tell me that you can achieve the same and even more in space where virtually everything is more complicated to achieve? And you're telling me that your entire business, or at least a big majority of it, will be this entirely unproven infrastructure? Seems like a bit of a stretch to me...

Now this being said, somehow some things may lie in the middle, but people seem to be a bit either too fond of the claims or too aggressive towards some part of the tech stack.

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#108

Post by thefounder »

frozenseven wrote: post #96
LinguaBrowse wrote: post #42

Earlier quoted context omitted.

I’ve moved my S&P 500 investments to the Equal Weight index to reduce my exposure to AI. Quite aside from SpaceX, I think the large-cap tech companies are making some uncomfortably large bets on AI and any major upset could cause a domino effect. But as so many ETFs have a significant stake in large-cap US tech stocks (the top 10 holdings of the iShares MSCI World ETF is entirely comprised US Big Tech, making up 20%…

[flagged]

Yeah like Cisco in 2000

Re: S&P 500 rejects SpaceX, also blocking entry for OpenAI and Anthropic

#110

Post by enaaem »

andsoitis wrote: post #60
zippyman55 wrote: post #3

Yep!! Respect to them. I was planning to move to an equal weight index but this gives me a little more time to evaluate options.

> I was planning to move to an equal weight index but this gives me a little more time to evaluate options. S&P requires 4 consecutive profitable quarters, amongst other requirements, so if one of the new mega caps like SpaceX or Anthropic or OpenAI get included, you’d probably want to get the benefit of their performance. Put differently, if one previously specifically picked an index fund that is not equal weighted…

Many people already have x% of their portfolio allocated to a growth fund, that might include fast growing AI companies. You need to keep the risk profile consistent. If you change the rules you mess up people's strategy.
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