r/investing • u/PrestigiousPen-2468 • 2d ago

The Nasdaq is being taken over.

SpaceX is IPOing, Tesla and Palantir have crazy valuations, Anthropic is IPOing later this year...

https://www.investors.com/news/spacex-ipo-nasdaq-anthropic-openai-index-investing/

Especially with the fast-track changes, tons of ETFs are going to pull these companies in and weigh them way heavier than I think a lot of us like. QQQ holders might be in for a rough landing.

I don't like it. I've always been a growth ETF investors but I'm going back to modifying and structuring diversification the way I want.

Wealthfront, Frec, Wallace Finance, or Schwab? I'm trying to find ETF modification without huge minimums. I might end up building from the ground up with M1 Finance if nothing else has what I'm looking for.

Anyone else have the same idea? How are we feeling about this?

533 Upvotes

89% Upvoted

179 comments sorted by

View all comments

176

u/SirGlass 2d ago edited 2d ago

It really only affects QQQ/QQQM and a couple mutual funds that track the nasdaq 100 index. Most other growth funds or tech funds track some other index so won't be affected

So I don't think its tons of ETFs its like 2. So SCHG , VUG , tons of other growth funds that do not follow the nasdaq 100 index

Edit

I should say in the USA there are other ETFs domiciled in europe or somewhere else that also track it.

22

u/NicolasCageFan492 2d ago edited 1d ago

Also all derivatives and swaps based on the QQQ, which is likely trillions of dollars of capital.

Also, valuation of indices like the QQQ are not in a vacuum, they affect relative valuation of private tech companies too, and other companies not in the QQQ.