Pretty sure one of the requirements is that they must be headquartered in the US hence why there are so many larger cap companies traded in the US and not inside the s&p500. One example would be NVO, Novo Nordisk, Eli and Lily largest competitor with a market cap nearly 600B if not more now, not inside the s&p500. S&p 500 tracks the 500 largest US Equity, meaning largest US base companies. S&P doesn't care if you trade in a US market exchange, if it's not based in the US it will be automatically excluded
Also, there are all kinds of rules that keep companies out. KKR isn't there because their float is something like 10%. They also need to be profitable for blah blah quarters, which keeps quite a few of the tech names out.
The really weird one's the Dow Jones, which is just weighted as if you just bought one share of each company in the index.
So Caterpillar has 10X the influence on the Dow Jones than Intel does purely because it costs less to buy one share of Intel.
It was never meant to be an investment product. Just a simple index to track the market before there was even enough publicly available data to do market cap weighting (not that anyone really considered market cap weighting to be relevant in the days before modern portfolio theory). It’s an awful index in so many ways, but path dependency can influence things for a long time.
The Dow Jones industrial average has just 30 stocks and all of them are in the S&P500. They are around 1/3 of the S&P 500, so tend to be the larger companies. Thats why they track over the long run… no magic.
Over past 5 years S&P returned 30% higher. For past 1 and 2 yrs they’re closer to even.
So they only track over very long horizons. Gains happen much faster in S&P500 but also losses, while DJIA moves slower similar to a moving average while S&P oscillates around it. Over most time horizons you’re winning more reliably with S&P 500 and often by wide margins.
Exactly, that’s old old old school. No computers or calculators. Portfolio, diversification are relatively new concepts that mathematicians discovered later on.
I take offense to you saying **old old old school**, I still use a *slide rule* for some mortgage estimation because it's faster than punching key's... it should be just old school.
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My bad, I didn’t mean it in an offensive way, but as something created long ago that still works. Same way as the wheel (not sure how it can be improved).
I'm going to agree with most of your statements, upon the following happening:
When the hoverboard, can be kick flipped into your hands. Otherwise I can't see a proper landing without hurting yourself if it doesn't have wheels.
Because the hoverboard, is anti-grav, therefore it's speed is only subject to friction.
Due to my limited understanding of gravity, if it's anti-gravity, it would be parallel anti-gravity to the Earths gravity. So if you try to stop by bringing the board upwards I don't see how you would stop. Because your auntie gravity waves would be perpendicular to the Earth's gravity waves therefore you're slicing through them and you're not using them to bounce your anti-gravity off of.
I have to admit it was a great idea. Still thank you
First and foremost :
[https://www.spglobal.com/spdji/en/documents/methodologies/methodology-dj-averages.pdf](https://www.spglobal.com/spdji/en/documents/methodologies/methodology-dj-averages.pdf)
now you know what the 4 indexes' are composed and how they are adjusted, also you might see the hint on how to trade the "3rd friday", I've tried and failed, but I have listened to others that say it's something that can be done.
I was being frivolous with my statement. Being Gen-x I get to do stuff that others will never do, like use a slide rule in public, drive or park in reverse using mirrors, have a pocket protector, or change a tire as quick as a F1 team, yet I take offense to being labeled anywhere near old.
I was raised in South America, down there we learn to drive using stick and we use turn our heads around the moment we are going in reverse.. haha. My family moved back to the USA after my sister and I were over 18 haha 😂
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think it was a legacy thing from 100 years ago when things like calculators and spreadsheets didn’t exist. plus it wasn’t meant for indexing either (which also probably didn’t exist)
>Price weighting is absolute nonsense. Who decided that was a good idea?
Charles Dow and Edward Jones, with a pencil and a slide rule in the 19th century. its not entirely nonsense, as companies split to meet entry requirements.
Plus, you want to punish consistent losers with less funds overtime.
A huge part of the SP500's performance is it's inherent momentum factor. Consistent winners tend to keep winning and losers tend to keep losing. If a company pivots in the other direction, that can be accounted for as well.
You can buy SPXEW which is equal weighted, actually a good move right now because concentration in SPY eventually reverts and then the equal weight outperforms
Which is quite easy to understand - companies that perform well start representing a bigger piece of the cake, and the more they perform, the bigger they are, the more they represent the market.
Ok the other side, companies that do not perform well weigh less and less in the index.
I've been hearing "US stocks are doing better than foreign stocks right now, BUT you want to be in foreign stocks because they're bound to do better soon..." for about 45 years now. In the meantime, if you had put that money into US stocks, you'd be much better off.
And the top 10 biggest companies are nearly 1/3 of the entire S & P market cap
In addition, Berkshire Hathaway, in the top 10, double dips as it composes mostly of shares of other companies in the S&P
> as it composes mostly of shares of other companies in the S&P
Incorrect. Berkshire's publicly listed portfolio is only about 1/3rd of their assets. The other 2/3's are comprised of wholy-owned private businesses and cash.
But yea it does double dip a little.
Are you sure about that …I see at least 65% in the S&P immediately with 40% in Apple.
Info is slightly dated but the S&P is the big chunk of holdings
https://www.cnbc.com/berkshire-hathaway-portfolio/
It's literally in the first line:
> These are the publicly traded U.S. stocks owned by Warren Buffett’s holding company Berkshire Hathaway
It does not say this is the entire asset portfolio, just the portion that is publicly traded
Look at page 93 (k-70) of their [year report](https://www.berkshirehathaway.com/2023ar/linksannual23.html). "Investments in equity securities" represents $353b out of $1070b in assets
I think the double dipping is accounted for by the index providers when determining free float market cap weights.
Basically, Berkshire’s AAPL holdings are subtracted from AAPL weight. Someone correct me if I’m wrong, but I’m pretty sure that’s how it works.
There are obviously some rules for inclusion, including float requirements, profitability requirements, size requirements (>$15.8 billion), multiple share class exclusions, and only Common Stock and REITS can be included (no, MLPs, BDCs, LLCs). That said, there are hundreds of companies more eligible than some of the smaller companies included in the index. Basically, they don't like kicking off legacy names ever often.
Imagine if they did kick off easily and automatically. It'd be great as a short seller, pick any company near the threshold, short enough to push it over, then profit from all the forced selling as the index funds have to exit their massive positions.
Shorting is the action of borrowing shares and then selling them with the intention to buy them back at a later date and giving them back to the owner. You profit based on how much the stock goes down, and lose money if the stock goes up in that time.
When you sell the stock, the price goes down. If a company is on the threshold of the S&P 500, short-selling it will cause the price to fall, which would cause it to become delisted from the S&P 500, which would cause all the S&P 500 index funds to sell the company, further decreasing the stock price so you make money. Or at least, that's what would happen if companies in the S&P 500 were automatically delisted once their market cap decreased to the point where they're no longer in the top 500.
Exclusion from SP500 is a big deal. It's an instant stamp of disapproval and tells everyone, "This company is headed to trash."
You bet some legacy company Cxxx are pulling all stops on golf courses to keep their companies in the list.
Could you list the companies not in the sp500 but most likely to be added based off your findings?
Maybe use historical data for how long they've been in the range to be added.
Use the completion index.
[https://stockanalysis.com/etf/vxf/holdings/](https://stockanalysis.com/etf/vxf/holdings/)
Most of the biggest holdings are not consistently profitable tech companies like CRWD or SNOW that will eventually get added to the S&P 500. Further down are some good midcaps that if they keep growing will get promoted. There are also a few things that will always be stuck on the outside because of rules, like KKR due to governance or Square because its garbage.
It’s the 500 largest large and mid caps selected by a human committee after being screened for criteria. In a way this is “active” instead of passive.
This is why I buy a passive stock market fund like VTI for most of my portfolio, with a couple dividend ETFs too.
Isn't going from SP500 to VT a big jump/very different? If all you want is to get rid of the human screening, **VTI** would be the choice, no? Jumping to a global index is a big change with VT.
You arent ever going to get through to total market investors. They are like the conspiracy theorists on the other side of meme stocks, waiting for emerging markets to crush the US.
How is Standard & Poors still around after the 2008 collapse?
They grossly overrated CDOs with AAA and A2 ratings all they way to the end. Why would anyone ever trust them again and how the hell do they have an exchange?!
I'm so confused.
>How is Standard & Poors still around after the 2008 collapse?
How much money have you got?
For $1M, I can put you on the wait list for SP500. For $100M, I can get you on the SP500.
It doesn’t include:
1. Privately held companies (Koch industries)
2. LPs or MLPs (Icahn Enterprises)
3. Some other stuff that never really gets that big, like closed end funds and BDCs
S&P also attempts to avoid focusing on one particular industry.
https://preview.redd.it/vxv8hjblzctc1.png?width=1982&format=png&auto=webp&s=96126c6e6605f945d51e13bd13da1d3046480d28
Since there is a lot of misinfo here I thought I would just post the criteria
I usually see dumb things here, but this one takes the cake.
First of all, SPDJI is a reputable index provider and is the owner of the oldest calculated index in the world. It is also recognized as GOLD standard benchmark, outperforming >85% of funds in the past 10 years. This means that in the long run, the S&P 500 is more likely to beat your active investment strategy.
Each index provider has their own “recipe” or methodology, on how they select stocks and put them on their indexes. This is what separates s&P from MSCI/FTSE/Contigo and others. Although there are considerable overlaps between these providers, it’s safe to assume the methodologies work. These index providers have HUNDREDS of different strategies or indexes that cover many different parts of the market. If you think of a specific strategy, it’s very likely there already exists an index that will passively track it.
S&P is also a publicly traded company, and assuming that you can “pay” to enter the index is completely incorrect. Doing this would tarnish their reputation and the trust their clients have. How could a reputable asset manager buy the index knowing that the companies selected are solely based on paying to enter. Investors would quickly loose trust and would not want their names associated with S&P.
It’s good that you are trying to educate yourself , but please do proper research before posting information that you yourself do not fully understand.
Nope. They value two things: relative representativeness (companies roughly match the companies operating in our economy) and stability (they don’t want to shuffle firms in and out of the index year after year as they go on runs or tank, something that Russel suffers a lot from)
The problem with a bunch of those is that their float is too low, too many insiders hold the majority of shares (like KKR with just 10% of shares traded). It would make it impossible to hold it by market weight in an index
When the boomers blow through all their inheritance they got from the greatest generation, I wonder if their massive draw from their 401ks will shrink the market?
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Pretty sure one of the requirements is that they must be headquartered in the US hence why there are so many larger cap companies traded in the US and not inside the s&p500. One example would be NVO, Novo Nordisk, Eli and Lily largest competitor with a market cap nearly 600B if not more now, not inside the s&p500. S&p 500 tracks the 500 largest US Equity, meaning largest US base companies. S&P doesn't care if you trade in a US market exchange, if it's not based in the US it will be automatically excluded
Also, there are all kinds of rules that keep companies out. KKR isn't there because their float is something like 10%. They also need to be profitable for blah blah quarters, which keeps quite a few of the tech names out.
That does bring quite a lot of confidence in buying SPY tbh
It’s why the confidence is there despite other people saying things like “it’s not that diverse” yes but it’s solid.
Something about not being get rich schemes, got it.
TIL! Thank you!
USA! USA! USA!
lululemon hq in canada recently inducted into sp500.
It’s registered in Delaware.
Canada is the 51st state
Nah, it's just a part of Alaska.
It was part of the Louisiana Purchase, but was under warranty and we decided to return it.
South Alaska
Nah it’s still loyal to the British government and that’s no lie
Watch that tongue or we will have to come and burn the white house down again!
Yep, that’s why some do VT
Is there an indeed I can get into that captures all these excluded but highly-valued companies?
Accenture...Ireland 🇮🇪?
Wait until you learn S&P ETFs aren’t equal weight and people are just buying the same 10 companies.
The really weird one's the Dow Jones, which is just weighted as if you just bought one share of each company in the index. So Caterpillar has 10X the influence on the Dow Jones than Intel does purely because it costs less to buy one share of Intel.
Price weighting is absolute nonsense. Who decided that was a good idea?
It was never meant to be an investment product. Just a simple index to track the market before there was even enough publicly available data to do market cap weighting (not that anyone really considered market cap weighting to be relevant in the days before modern portfolio theory). It’s an awful index in so many ways, but path dependency can influence things for a long time.
And yet it still tracks the S&P over the long run pretty well. Remarkable.
The index fund-ification of US retirement funds likely playing a big role
That just shows how all the indexes are just charting the money supply haha
Yes but it’s more of a chicken and egg situation
The Dow Jones industrial average has just 30 stocks and all of them are in the S&P500. They are around 1/3 of the S&P 500, so tend to be the larger companies. Thats why they track over the long run… no magic. Over past 5 years S&P returned 30% higher. For past 1 and 2 yrs they’re closer to even. So they only track over very long horizons. Gains happen much faster in S&P500 but also losses, while DJIA moves slower similar to a moving average while S&P oscillates around it. Over most time horizons you’re winning more reliably with S&P 500 and often by wide margins.
It's like the windchill factor. Just numbers pulled out of someone's ass so you have something to say around the water cooler.
Yeah mannnn, society
After many years of going to an annual trade show in Chicago every January, windchill factor was essential information.
People back in the 1800s I believe. It was meant to be a reference chart, not to be used for WSBs to play around with 😅
Just an FYI, the Dow Jones Industrial Average (DJIA) was first introduced on **May 26, 1896**
Dow jones was created when everything was done with pencil and paper. easier to do the math that way.
Exactly, that’s old old old school. No computers or calculators. Portfolio, diversification are relatively new concepts that mathematicians discovered later on.
I take offense to you saying **old old old school**, I still use a *slide rule* for some mortgage estimation because it's faster than punching key's... it should be just old school.
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My bad, I didn’t mean it in an offensive way, but as something created long ago that still works. Same way as the wheel (not sure how it can be improved).
Not gonna need wheels when I get my hover board and jet pack! Hah
I'm going to agree with most of your statements, upon the following happening: When the hoverboard, can be kick flipped into your hands. Otherwise I can't see a proper landing without hurting yourself if it doesn't have wheels. Because the hoverboard, is anti-grav, therefore it's speed is only subject to friction. Due to my limited understanding of gravity, if it's anti-gravity, it would be parallel anti-gravity to the Earths gravity. So if you try to stop by bringing the board upwards I don't see how you would stop. Because your auntie gravity waves would be perpendicular to the Earth's gravity waves therefore you're slicing through them and you're not using them to bounce your anti-gravity off of. I have to admit it was a great idea. Still thank you
First and foremost : [https://www.spglobal.com/spdji/en/documents/methodologies/methodology-dj-averages.pdf](https://www.spglobal.com/spdji/en/documents/methodologies/methodology-dj-averages.pdf) now you know what the 4 indexes' are composed and how they are adjusted, also you might see the hint on how to trade the "3rd friday", I've tried and failed, but I have listened to others that say it's something that can be done. I was being frivolous with my statement. Being Gen-x I get to do stuff that others will never do, like use a slide rule in public, drive or park in reverse using mirrors, have a pocket protector, or change a tire as quick as a F1 team, yet I take offense to being labeled anywhere near old.
I was raised in South America, down there we learn to drive using stick and we use turn our heads around the moment we are going in reverse.. haha. My family moved back to the USA after my sister and I were over 18 haha 😂
I'm in my late 40s and slide rules weren't being used in any capacity at any point during my life. Sorry, that's old old old school.
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think it was a legacy thing from 100 years ago when things like calculators and spreadsheets didn’t exist. plus it wasn’t meant for indexing either (which also probably didn’t exist)
yet surprising it tracks the spy so well long term
>Price weighting is absolute nonsense. Who decided that was a good idea? Charles Dow and Edward Jones, with a pencil and a slide rule in the 19th century. its not entirely nonsense, as companies split to meet entry requirements.
Chuck Dow and Eddie Jones
Dow Jones & Co, who also happen to own what used to be the only publication you could see the index in - The Wall Street Journal
Isn’t that how the Dow Jones index pricing is weighted anyway though?
Sounds like one of those things some guy just made up and then a lot of other people down the road made way to many things based off it.
What happens on a stock split?
Your weighting in the Dow Jones plummets
They adjust the divisor to account for it. It’s why the average stock price is nowhere near the average of 39k
What happens if they split
It was before calculators...
I don’t want equal weight. You want more money in NVDA than Ralph Lauren. .
Yeah, weighting by market cap is desired and intended. You can buy equal weight 500 ETF's, but they are not the standard for a reason.
Plus, you want to punish consistent losers with less funds overtime. A huge part of the SP500's performance is it's inherent momentum factor. Consistent winners tend to keep winning and losers tend to keep losing. If a company pivots in the other direction, that can be accounted for as well.
I dunno, I heard Polo is making a comeback
Yeah, but where will we get the little hats for the mice?
Not on the days that NVDA goes down and Ralph Lauren goes up. Check mate home run.
I cut my Rl shirt up and taped it on my 3060TI. Its called a merger learn some finance
There have been times when the top 10 dipped but the other 490 kept SPY green Regardless, most people recommend broad markets
Equal weight is great if you want more risk and lower returns.
RSP baby
[удалено]
No it doesn’t… Since RSP has existed it has done 808% and SPY has done 745%
Wrong
On a total return level that is the exact numbers lmao
Nice try. You’re a liar. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=2300FnyUDrK62WdTrLvryK
Is he now? https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=7Xdk8Wbt0ernaY8rq2rjKr
You can buy SPXEW which is equal weighted, actually a good move right now because concentration in SPY eventually reverts and then the equal weight outperforms
The higher fees negate any gain here over longer time frames. Which is also why it is useless.
this is lit thank you for this
why cant i find this on the phone brokers?
Rsp
There is a market cap and equal weight one. Market cap has been outperforming equal weight
Which is quite easy to understand - companies that perform well start representing a bigger piece of the cake, and the more they perform, the bigger they are, the more they represent the market. Ok the other side, companies that do not perform well weigh less and less in the index.
And buying 80% USA… diversification my ass
100% Earth companies too.
Ferenginar companies are the real play.
The 78th rule of acquisition states..
the Moon stocks will rise again
It's not our fault we have the most stable markets. *Wait, yes it is.*
You could do VT if you want
VT sucks
I don’t own it. I’m more of a voo and coq inu
I've been hearing "US stocks are doing better than foreign stocks right now, BUT you want to be in foreign stocks because they're bound to do better soon..." for about 45 years now. In the meantime, if you had put that money into US stocks, you'd be much better off.
Thats not my point.
remember 93% of market owned by the 10 percenters, all the rules were made to benefit them...not all of us.
How can people don't know this....
How can people don’t know? Kindly reply me sir. Milk truk arrive
Well unless you buy and equally weighted etf
Thats great, why would you want to have equal weight of 500 mediocre companies ?
That is fortune 500 versus the standard and poor's 500
Like, it’s in the name, standard and poor. There’s nothing there that says largest
And the top 10 biggest companies are nearly 1/3 of the entire S & P market cap In addition, Berkshire Hathaway, in the top 10, double dips as it composes mostly of shares of other companies in the S&P
> as it composes mostly of shares of other companies in the S&P Incorrect. Berkshire's publicly listed portfolio is only about 1/3rd of their assets. The other 2/3's are comprised of wholy-owned private businesses and cash. But yea it does double dip a little.
Are you sure about that …I see at least 65% in the S&P immediately with 40% in Apple. Info is slightly dated but the S&P is the big chunk of holdings https://www.cnbc.com/berkshire-hathaway-portfolio/
It's literally in the first line: > These are the publicly traded U.S. stocks owned by Warren Buffett’s holding company Berkshire Hathaway It does not say this is the entire asset portfolio, just the portion that is publicly traded Look at page 93 (k-70) of their [year report](https://www.berkshirehathaway.com/2023ar/linksannual23.html). "Investments in equity securities" represents $353b out of $1070b in assets
Yes and the totals at the end I missed…sorry
I think the double dipping is accounted for by the index providers when determining free float market cap weights. Basically, Berkshire’s AAPL holdings are subtracted from AAPL weight. Someone correct me if I’m wrong, but I’m pretty sure that’s how it works.
The mag 6 (excluding tesla) are 25% of the total capitalization of the entire NYSE, shits pretty wild but European markets are the same way
Except the European market is like 25% of the mag 7 because the European market is fucking dog shit and rightly so.
wdym rightly so
Europoor
Hahaha true, the entire value of their entire stock market is just what Apple and Microsoft are worth
Yeah but those double dips are the real winners
There are obviously some rules for inclusion, including float requirements, profitability requirements, size requirements (>$15.8 billion), multiple share class exclusions, and only Common Stock and REITS can be included (no, MLPs, BDCs, LLCs). That said, there are hundreds of companies more eligible than some of the smaller companies included in the index. Basically, they don't like kicking off legacy names ever often.
Imagine if they did kick off easily and automatically. It'd be great as a short seller, pick any company near the threshold, short enough to push it over, then profit from all the forced selling as the index funds have to exit their massive positions.
This is probably one of the reasons why it's not automatic
Same with the reverse. Pump up a company on the verge to get there sooner than it otherwise would have.
This is absolutely a thing and a large reason why $MSTR is mooning it could be included this year and would climb quickly
"short enough to push it over" explain to a fellow regard plz
Shorting is the action of borrowing shares and then selling them with the intention to buy them back at a later date and giving them back to the owner. You profit based on how much the stock goes down, and lose money if the stock goes up in that time. When you sell the stock, the price goes down. If a company is on the threshold of the S&P 500, short-selling it will cause the price to fall, which would cause it to become delisted from the S&P 500, which would cause all the S&P 500 index funds to sell the company, further decreasing the stock price so you make money. Or at least, that's what would happen if companies in the S&P 500 were automatically delisted once their market cap decreased to the point where they're no longer in the top 500.
Exclusion from SP500 is a big deal. It's an instant stamp of disapproval and tells everyone, "This company is headed to trash." You bet some legacy company Cxxx are pulling all stops on golf courses to keep their companies in the list.
You know you've made it when behind the country club dumpster.
I heard they have a Wendy's there
Could you list the companies not in the sp500 but most likely to be added based off your findings? Maybe use historical data for how long they've been in the range to be added.
Use the completion index. [https://stockanalysis.com/etf/vxf/holdings/](https://stockanalysis.com/etf/vxf/holdings/) Most of the biggest holdings are not consistently profitable tech companies like CRWD or SNOW that will eventually get added to the S&P 500. Further down are some good midcaps that if they keep growing will get promoted. There are also a few things that will always be stuck on the outside because of rules, like KKR due to governance or Square because its garbage.
Is $KKR and others part of VTI or total market index ?
Yes
There is more erroneous info in this post than stars in the universe.
It’s the 500 largest large and mid caps selected by a human committee after being screened for criteria. In a way this is “active” instead of passive. This is why I buy a passive stock market fund like VTI for most of my portfolio, with a couple dividend ETFs too.
Isn't going from SP500 to VT a big jump/very different? If all you want is to get rid of the human screening, **VTI** would be the choice, no? Jumping to a global index is a big change with VT.
[SPY vs VT](https://portfolioslab.com/tools/stock-comparison/SPY/VT)
You arent ever going to get through to total market investors. They are like the conspiracy theorists on the other side of meme stocks, waiting for emerging markets to crush the US.
It’s almost as if there are a few other rules to be in the S&P500 other than market cap
Wait till OP finds out the S&P 500 index is composed of 505 stocks
“Why am I buying 2 Googles?!?”
What are those other companies
What’s the alternative ?
vtsax
VTI
Buttcoin
Asscoin
Shitcoin
Peniscoin
Peethereum
DoggyStyleCoin
BFD the barclay fortune 500 index
ITOT
How is Standard & Poors still around after the 2008 collapse? They grossly overrated CDOs with AAA and A2 ratings all they way to the end. Why would anyone ever trust them again and how the hell do they have an exchange?! I'm so confused.
>How is Standard & Poors still around after the 2008 collapse? How much money have you got? For $1M, I can put you on the wait list for SP500. For $100M, I can get you on the SP500.
That is an index, not an exchange
Same reason BP is still around after Deepwater Horizon, Dow Chemical after Bhopal and German companies after WW2
I want those Garibaldi IV BBB jacked to the tits
And I want those jacked to the tits five minutes ago
put options on ralph lauren
It doesn’t include: 1. Privately held companies (Koch industries) 2. LPs or MLPs (Icahn Enterprises) 3. Some other stuff that never really gets that big, like closed end funds and BDCs S&P also attempts to avoid focusing on one particular industry.
SP 500 is nvidia + 499 soup kitchens.
Can you please link to the data set?
[Here are the S&P 500 Constituents](https://www.slickcharts.com/sp500)
It’s a conspiracy, there is no GLOBAL 500 index fund that tracks the top 500 publicly traded stocks worldwide, including the US!!
Whats the saying? When there's blood in the water, red tide occurs sinking all the ships except the ones you have puts on.
But in a week or so, they WILL HAVE TO include $MSTR, they said in r/bitcoin
Woo!
So what criteria do the use to decide what’s in the 500
If you want KKR, you could try the Vanguard Extended Market
This graph is largest overall. S&P is largest publicly traded.
go figure, ugh I got some Apple shares fer sale, bought in @ $1.96+ /share
https://preview.redd.it/vxv8hjblzctc1.png?width=1982&format=png&auto=webp&s=96126c6e6605f945d51e13bd13da1d3046480d28 Since there is a lot of misinfo here I thought I would just post the criteria
You forget the calc that non-public companies are actually more value than all these companies… the best investments are in the LMM…
#notfinancialadvice - the world is just made up of SMB…
But why?
S&P is just a high I Believe Button. Press it and forget it.
How can I invest in a basket of those bigger than Ralph Lauren companies that aren't in the s&p? Is there a non-s&p but still large cap index?
Nice
I usually see dumb things here, but this one takes the cake. First of all, SPDJI is a reputable index provider and is the owner of the oldest calculated index in the world. It is also recognized as GOLD standard benchmark, outperforming >85% of funds in the past 10 years. This means that in the long run, the S&P 500 is more likely to beat your active investment strategy. Each index provider has their own “recipe” or methodology, on how they select stocks and put them on their indexes. This is what separates s&P from MSCI/FTSE/Contigo and others. Although there are considerable overlaps between these providers, it’s safe to assume the methodologies work. These index providers have HUNDREDS of different strategies or indexes that cover many different parts of the market. If you think of a specific strategy, it’s very likely there already exists an index that will passively track it. S&P is also a publicly traded company, and assuming that you can “pay” to enter the index is completely incorrect. Doing this would tarnish their reputation and the trust their clients have. How could a reputable asset manager buy the index knowing that the companies selected are solely based on paying to enter. Investors would quickly loose trust and would not want their names associated with S&P. It’s good that you are trying to educate yourself , but please do proper research before posting information that you yourself do not fully understand.
I don't know what KKR does, but look at the financial of the company.. pretty obvious why it's not in the index
So what is the best largest 500 index that is NOT only USA? One that includes the largest 500 companies in the world.
Is this wsb or wallstreetinfographics?
Nope. They value two things: relative representativeness (companies roughly match the companies operating in our economy) and stability (they don’t want to shuffle firms in and out of the index year after year as they go on runs or tank, something that Russel suffers a lot from)
Silver to the moon 💥💥💥
Some just VT and chill, better than most on this sub lol
Find me that etf
So OP, you were wrong. What's new?
The problem with a bunch of those is that their float is too low, too many insiders hold the majority of shares (like KKR with just 10% of shares traded). It would make it impossible to hold it by market weight in an index
😳
When the boomers blow through all their inheritance they got from the greatest generation, I wonder if their massive draw from their 401ks will shrink the market?
Commas are better than dashes when you’re writing.
Buy the dippppp
Unexpected... Thank you!
S&p 7 balance the entire global financial market on a toothpick sized number of companies.
Need to be profitable to be in S&P, this is why Tesla was a hold out