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The indexes are weighted based on the float (at least most of them)... so a small float means they will buy a much smaller number of shares.


Well, they changed that rule as well. If the float is less than a set percentage, then it is weighted as a much higher percentage. Something like the minimum for weighting is 12% where SpaceX's float will be below 5% (those are the numbers I recall, but I don't have a lot of confidence in them.) That means they will be weighted as if the float was 12%.


> they changed that rule as well

S&P hasn’t changed any rules yet.


NASDAQ has, however. SpaceX will be weighted at triple its public float.


How many funds track NASDAQ vs S&P 500? Feels like the former is way more niche/sector specific than the latter.


I think that's the point the parent comment was making.


No, the parent was saying the other rule change is arbitrary.

The tiny float and just a few days before the index funds buy means they have to buy without any more revenue / earnings info than was already published pre-IPO. 90 days is a quarter, so there WILL be more price discovery before a 0 day index fund seasoning period.




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