Big news! As all of you know by now, Tesla will be included into the S&P500 on December 21st (in one time). I feel this big change deserves a post on this forum so we may discuss the potential consequences for index trackers.
How large of a distortion do you think we may expect in ETF’s like VTI? The transactions on the 21st could be the largest in history, estimated 72 Billion USD
At Tesla’s current rate, passive funds are expected to have to sell 35B USD in assets to make a hole big enough for Tesla. How does this affect ETF shares?
The following mindset goes against the Mustachian’s, but would it any sense to simply sell everything, taking your profit / losses and purchasing again after the trackers have reset? (I’m assuming not, yet I’m quite inexperienced and only got as far as buying and holding for a >1 year…)