>All that an inclusion of these new companies would accomplish is a bailout of their stockholders by pension funds and ETFs where millions of regular people shoulder all the downside risk.

Carvana is the poster child for this. It's astonishing that a company with a history of shady practices, and that has yet to offer a convincing explanation for why it is not a scam, is part of the S&P 500.

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l23k4 2 hours ago | parent | next [-]

Ah, so you'd like the passive broad market index which contains the 500 biggest good companies?

Do tell us if you find one I guess.

	▲	Animats 42 minutes ago \| parent [-]
		That's what "value funds" do.

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rtpg 3 hours ago | parent | prev | next [-]

what's the argument for it being a scam?

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hnav 3 hours ago | parent [-]

shady debt offloading onto its sibling financing entity, which is run by Carvana CEO's father, a man convicted of fraud

	▲	maest 2 hours ago \| parent [-]
		> a man convicted of fraud Most practitioners in the field see that as a very strong signal of future fraud.

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iririririr an hour ago | parent | prev [-]

why go that far? herbalife moto is probably "we're a pyramid scheme scam" and they are 45% vs sp500 25% for last 12mo.

you'd better of investing scam500 than sp500 nowadays.

	▲	cik an hour ago \| parent \| next [-]
		Whenever someone says nowadays, they're highlighting recency bias. The goals of holding a broad market ETF are diversification leading to sleeping well over the long term (at least to me).
	▲	vkou 32 minutes ago \| parent \| prev [-]
		How well do SCAM500 stocks do over a time period that includes two recessions, compared to SP500 ones? I've no doubt that the short-term gains during a bull market on all sorts of garbage are significant.