It’s a liability on most index funds. I’m too lazy to manage active trading and shorting but would buy an ETF that tracks the S&P 500 minus TSLA.
Rather than have a custom ETF you can get one that includes it then individually short Tesla to counteract your identified risk.
This would be cheaper and if your theory is correct, you'd outperform the S&P500.
Now, as to whether those companies will remain solvent long enough, will give you simple enough taxes, and can keep expenses low while rebalancing is another story. You are doing frontier-ish things. It's not as if you have Vanguard or Fidelity offering products like that.
> If there's a security you don't want to own, you can remove it.
Dunno about Vanguard.
There are equal weight funds: in the US see perhaps $RSP.
Vanguard article on the topic:
> There are numerous considerations when selecting an equity index exposure, including the choice between market-cap or equal-weighted methodologies.
* https://www.vanguard.co.uk/professional/insights-education/i...
I also like this quote:
For US stocks, Wu of Sparkline estimates that accounting for intangible assets would cut perceived overvaluation by about 25 to 50 per cent, relative to headline valuation metrics. “While the market is by no means cheap, once firms are given credit for their intangible assets, valuations look far less frothy than the headlines imply,” he says.
https://www.etf.com/sections/etf-basics/why-do-leveraged-etf...
0.62% ER, yikes