| ▲ | muadddib 5 hours ago |
| Kudos to S&P 500. Vast majority of the world has no clue how trillions of $ from their pension funds is being funneled to the select few. Absolutely pathetic. |
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| ▲ | JumpCrisscross 4 hours ago | parent | next [-] |
| > no clue how trillions of $ from their pension funds Pension funds don't tend to follow the S&P 500, much less automatically. They're sophisticated institutional investors like CalPERS [1] who dabble in everything from public stocks to private equity. It's other retirement assets, e.g. 401(k)s and IRAs, that tend to follow the S&P 500. But again, with substantial variation. S&P including these companies would have driven a lot of money towards them. But there was a lot of misinformation around the magnitude of that drive, as well as the breadth of whom it would affect. [1] https://en.wikipedia.org/wiki/CalPERS |
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| ▲ | viceconsole 4 hours ago | parent [-] | | In the US at least, many pension funds are not sophisticated, they're small, underfunded, and getting taken for a ride by expensive advisors who promise fantastical returns that will help dig them out of their funding ratio hole. Many would be better off using an S&P 500 index fund for their equity component instead of getting wined and dined into an illiquid, opaque private equity investment. Telling that among OECD countries, the US is an outlier in having a much lower average funding ratio, and this despite the fantastic performance of the US stock market over the last 15 years. | | |
| ▲ | JumpCrisscross 3 hours ago | parent [-] | | > many pension funds are not sophisticated, they're small, underfunded, and getting taken for a ride by expensive advisors Who tend to come up with bumfuck benchmarks other than the common ones. Sometimes for good reasons. Often to justify their own comp. > Many would be better off using an S&P 500 index fund Maybe. They would probably be better off with some total-market funds (instead of biasing towards large caps, especially if they're small). But my point stands: pension funds don't tend to automatically follow any major index, much less the S&P 500 proper. | | |
| ▲ | kgwgk 3 hours ago | parent [-] | | It’s true that S&P 500 is not the most popular US equities benchmark for pension funds. Russell is the preferred provider - and they will include SpaceX 5 days after the IPO. | | |
| ▲ | JumpCrisscross 2 hours ago | parent [-] | | > S&P 500 is not the most popular US equities benchmark for pension funds. Russell is the preferred provider Where are you getting this from? Basically zero pension funds automatically track any single index. (There seems to be a misconception equating pension funds with retirement funds in general. Pension funds are, on the whole, remarkably sophisticated investors. Many pensions funds were private shareholders of these companies already.) > Russell is the preferred provider - and they will include SpaceX 5 days after the IPO Russell has loads of indices. Their total market index will quickly incorporate SpaceX. Same with S&P. There are also IPO indices that will incorporate it on day one, because that's what they're designed to represent. |
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| ▲ | joxdosba 4 hours ago | parent | prev [-] |
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| ▲ | lumost 4 hours ago | parent | next [-] | | It's quite clear that there is an effort to engineer mega financial vehicles that index tracking funds are forced to buy. The incentive to do so is massive, and there is nothing illegal about it. As a holder of index funds such as the S&P, I'd much prefer that these vehicles are excluded for at least some period of time to ensure that the greater fool isn't simply my index portfolio. | | |
| ▲ | 4 hours ago | parent | next [-] | | [deleted] | |
| ▲ | kortilla 3 hours ago | parent | prev [-] | | Are you happy to be invested in Tesla? It is not profitable quarter to quarter and is included in your fund. Why do you tolerate that and not this? |
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| ▲ | muadddib 4 hours ago | parent | prev | next [-] | | I did, in fact, use words. Would you prefer heiroglyphics? | |
| ▲ | viccis 4 hours ago | parent | prev | next [-] | | All of those are real, natural, organic and, might I add, "actual" words. | | | |
| ▲ | propagandist 4 hours ago | parent | prev [-] | | The comment above is perfectly clear, and if you have been living under a rock since the Reagan years, that's on you. See Elon talking about Tesla finally joining the S&P 500 so index funds would finally have to buy its shares. See a hundred examples where socialism is reserved for the few, the jungle and legal constraints for the rest of us. |
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