Maybe yes, maybe no. A lot of funds track some index. There are a bunch of indexes out there, but one of the ones you’ve probably heard of is the S&P 500. That index tends to be the 500 largest companies in the US that meet a certain criteria, and SPCX did not meet that criteria (so far). They probably will get into the “nasdaq” which is really the NASDAQ-100 which is made of 100 companies that meet whatever criteria and it ends up being tech heavy as a result.
If it gets into the S&P 500 index, then by charter, a lot of the funds that track that index have to buy it. Whether your 401(k) has it or not depends on the specific funds offered and which ones people elected into.
I imagine if most folks just used the target fund for their retirement date then they’ll probably end up with some SPCX somewhere in the stack.
if most folks just used the target fund for their retirement date then they’ll probably end up with some SPCX
Sooo… most folks got their 401k’s dragged into an unstable IPO, because the rules changed to allow it after only 15 days? Idk, that sounds like some “trickle up” shit to me. Am I missing something, honestly? It seems predatory and wrong, to my laymen ass understanding
I don’t know enough about specifically what the NASDAQ did with their rules to speak to it, but I will say there’s a whole lot of “we never had to make a rule about X before because we never thought anyone would do X” going around.
Maybe yes, maybe no. A lot of funds track some index. There are a bunch of indexes out there, but one of the ones you’ve probably heard of is the S&P 500. That index tends to be the 500 largest companies in the US that meet a certain criteria, and SPCX did not meet that criteria (so far). They probably will get into the “nasdaq” which is really the NASDAQ-100 which is made of 100 companies that meet whatever criteria and it ends up being tech heavy as a result.
If it gets into the S&P 500 index, then by charter, a lot of the funds that track that index have to buy it. Whether your 401(k) has it or not depends on the specific funds offered and which ones people elected into.
I imagine if most folks just used the target fund for their retirement date then they’ll probably end up with some SPCX somewhere in the stack.
Sooo… most folks got their 401k’s dragged into an unstable IPO, because the rules changed to allow it after only 15 days? Idk, that sounds like some “trickle up” shit to me. Am I missing something, honestly? It seems predatory and wrong, to my laymen ass understanding
I don’t know enough about specifically what the NASDAQ did with their rules to speak to it, but I will say there’s a whole lot of “we never had to make a rule about X before because we never thought anyone would do X” going around.