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Pay perhaps?
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Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
101–110 of 560 posts
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#102Earlier quoted context omitted.
The index they use is altering the rules. I complained to my account rep, he agreed it was not great and is asking the fund mgmt what the plan is. I doubt there is a lot they can do.
VTI > Seeks to track the performance of the CRSP US Total Market Index. The index that is changing its rules is the NASDAQ100, commonly referred to as the NASDAQ, although NASDAQ is also the name of the exchange.
https://www.reuters.com/legal/government/morningstar-conside...
Morningstar said its CRSP Market Indexes will "undergo enhancements to introduce an alternative liquidity screen", making it possible to add SpaceX and other giant IPOs to these benchmarks more rapidly. The funds that use the CRSP indexes as a portfolio benchmark include Vanguard's $607 billion Total Stock Market ETF.
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#103It's really concerning given how the indexes are changing rules to fast-track SpaceX being forced into index funds. S&P is also working on updates to S&P 500 to force it down everyone's throats quickly and algorithmically.
I'm usually a Boglehead, with some exceptions, and one exception I'd love is some sort of trade that would eliminate my exposure to SpaceX for the next few years. I'm sure there's some combo of options that would do it. Probably finding an ESG-focused ETF would do it. ESG basically meant "good governance, we follow laws" which translated into better governed public companies that therefore had better returns, as one…
> I'd love is some sort of trade that would eliminate my exposure to SpaceX
You can just short SpaceX of an amount equivalent to its share of your SP500 holdings. You will have to pay borrowing costs though, but on something that liquid it will be very small.
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#104It's really concerning given how the indexes are changing rules to fast-track SpaceX being forced into index funds. S&P is also working on updates to S&P 500 to force it down everyone's throats quickly and algorithmically.
I'm usually a Boglehead, with some exceptions, and one exception I'd love is some sort of trade that would eliminate my exposure to SpaceX for the next few years. I'm sure there's some combo of options that would do it. Probably finding an ESG-focused ETF would do it. ESG basically meant "good governance, we follow laws" which translated into better governed public companies that therefore had better returns, as one…
One annoying thing is that those "non-standard" ETF variants have much higher management costs than basic S&P500 / All World ETFs.
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#105Earlier quoted context omitted.
Stock markets are ruled by hype and fomo. Good corporate governance has little to do with returns, unfortunately.
Short term gains are hype and fomo, but if you're holding index funds long like I am, then returns have a lot more to do with performance. And given the lack of hype around ESG, it seems like an exceptional time to buy in to it.
Bro the index is about riding the hype and fomo and when the phenomenon progressively loses track it gets less and less quota
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#106Earlier quoted context omitted.
I think it's undervalued.
Have you looked at the S1? The valuation is not based on launchers, it's based on all the potential money they can make as an AI company. Given that they are probably not even in the top 10 in that business, it's just pie in the sky.
Welp, if enough people think like the other fella, line will go up and money will be made
Something about finding out who's swimming naked once the tide goes out
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#107Earlier quoted context omitted.
Imagine not wanting to own a piece of the first company to make a re-usable orbital class booster.
Imagine buying the most overvalued company of all time helmed by a crazy man who does Nazi salutes. Payback period? Who cares! Orbital class booster yayyyy
Say what you want about nazis, but they are good at rockets.
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#108It's really concerning given how the indexes are changing rules to fast-track SpaceX being forced into index funds. S&P is also working on updates to S&P 500 to force it down everyone's throats quickly and algorithmically.
I'm usually a Boglehead, with some exceptions, and one exception I'd love is some sort of trade that would eliminate my exposure to SpaceX for the next few years. I'm sure there's some combo of options that would do it. Probably finding an ESG-focused ETF would do it. ESG basically meant "good governance, we follow laws" which translated into better governed public companies that therefore had better returns, as one…
> some sort of trade that would eliminate my exposure to SpaceX
I think it's less complicated than you'd think.. just buy LEAPS puts proportional to your exposure.
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#109Earlier quoted context omitted.
I'm usually a Boglehead, with some exceptions, and one exception I'd love is some sort of trade that would eliminate my exposure to SpaceX for the next few years. I'm sure there's some combo of options that would do it. Probably finding an ESG-focused ETF would do it. ESG basically meant "good governance, we follow laws" which translated into better governed public companies that therefore had better returns, as one…
> I'd love is some sort of trade that would eliminate my exposure to SpaceX You can just short SpaceX of an amount equivalent to its share of your SP500 holdings. You will have to pay borrowing costs though, but on something that liquid it will be very small.
Shorts have unlimited risk. Buying a put is risk-defined and probably a better strategy.
Re: Danish Pension Blacklists SpaceX over 'Catastrophic Governance'
#110Earlier quoted context omitted.
I'm usually a Boglehead, with some exceptions, and one exception I'd love is some sort of trade that would eliminate my exposure to SpaceX for the next few years. I'm sure there's some combo of options that would do it. Probably finding an ESG-focused ETF would do it. ESG basically meant "good governance, we follow laws" which translated into better governed public companies that therefore had better returns, as one…
> I'd love is some sort of trade that would eliminate my exposure to SpaceX You can just short SpaceX of an amount equivalent to its share of your SP500 holdings. You will have to pay borrowing costs though, but on something that liquid it will be very small.
Yeah. For comparison, SpaceX will be maybe half the size of MSFT. MSFT is 7.4% of the SP500 index, so for a $1,000,000 portfolio if you were to short MSFT you'd pay 0.25% on the value of that 7.4%, or $185/year.
So eliminating SpaceX exposure will cost you $100 per million of your SP500 ETF per year, or so.