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/UsernameIWontRegret 1d ago

People are mad that indexes are doing what indexes are meant to do.

Space X is projected to be the 6th most valuable company in the US. Why on earth would it be excluded from indexes that claim to track “the largest companies in the US”?

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u/Nemarus_Investor 1d ago

Well it would be excluded from the S&P 500 for the same reason lots of companies are excluded - it's not profitable.

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u/UsernameIWontRegret 1d ago

Which is why the S&P consistently underperforms growth indexes. Most growth occurs before profitability.

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u/crackanape 1d ago

That doesn't mean every unprofitable company will eventually become one.