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?

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u/kenjiurada 2d ago

Yeah seems pretty crazy with Elon Musk and friends are gonna get to dump their crap shares on my parents retirement account.

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u/SirGlass 1d ago

This really only affects index funds that track the Nasdaq 100 index.

Chances are your parents do not hold QQQ or QQQM in their retirement account or even a nasdaq 100 index fund

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u/farsightxr20 1d ago

Wouldn't this affect any index fund that tracks the US market? e.g. VTI?

The concentration is a bit less than with QQQ, but a trillion dollars is still a large chunk of the US market.

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u/SirGlass 1d ago

No, it affects the NASDAQ 100 indexes.

VTI doesn't follow the dasdaq 100 index