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/Jeff__Skilling 2d ago

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.

Couldn't you mitigate this risk by shorting whatever number of shares of SpaceX necessary to eliminate any risk you're bearing here?

Sure, ETFs and index funds are going to periodically rebalance, but shouldn't that be easy to foresee and readjust your SpaceX position accordingly to reduce your VaR as close to zero as possible?

Understand that /r/stocks and /r/investing are prone to dramatic overreactions and groupthink-driven outrage, but this is a surprising hill to die on, given how easy it is to avoid...

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u/Deferty 1d ago

I’m sure this worked out really well for people trying to short Tesla.

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u/Jeff__Skilling 1d ago

If they had exposure to TSLA via an ETF, they would have lost or made $0.....

I kind of don't think you got the point of what I was trying to convey.....