Yes a -1% day should be nothing to a long term holder. Yes they're buying the market; if the market is wrong they shouldn't really have any recourse. But one can also understand that a -1% day that accrues ~entirely to the benefit a small group, who appear to have engineered that outcome has much more emotional valence than a typical down down. It doesn't feel like a bad day on the market, it feels like a heist.
If a 1 to $1.5t IPO that was fast tracked onto the S&P500 and then hoovered up a bunch of index fund money becomes a dud, the organic rebalance is going to start with a full reassessment of if index funds and the S&P can be TRUSTED.
Its very possible it will be more than a blip, although to be fair if it isn't it's going to be the sort thing you aren't going to dodge.
* air quality
* environmental risk
* GHG emissions
* ecological impact
* product sustainability
https://www.inspireetf.com/screening
yet weights ExxonMobil, the 21st largest company:
https://companiesmarketcap.com/
as by far their 2nd largest holding:
$PTL/Inspire does not adjudicate "dial" ethical issues, just switches -- company practices/policies that it views as black-and-white good/bad. "It would be ethical if you produced N% less" doesn't fit that category.
Regardless, most companies I checked have multiple different ratings because that site can't even do basic data cleaning:
https://inspireinsight.com/AAPL/US https://inspireinsight.com/AAPL/PT
https://inspireinsight.com/GOOGL/GT https://inspireinsight.com/GOOGL/MX
https://inspireinsight.com/MSFT/AU https://inspireinsight.com/MSFT/US
https://inspireinsight.com/AVGO/US https://inspireinsight.com/0YXG/GB
https://inspireinsight.com/TSM/US https://inspireinsight.com/5425/TW
https://inspireinsight.com/LUBEREF/SA https://inspireinsight.com/2223/SA
so even they disagree with their own ratings ;)
$GOOGL.MX scoring differently than other $GOOGL listings makes me extremely skeptical that humans are diligently creating these scores (finance professionals should've recognized that secondary listings like $GOOGL.MX don't need their own scoring)
What I think is more likely is that it's a dumb oversight in the web app and/or data - maybe an intern stubbed out international stocks and it got pushed to production
Secondary listings allow entire companies to trade on multiple exchanges (not just corresponding subsidiaries)
So I agree that it was likely just a mistake to list multiple listings of the same companies, but the fact that they usually receive different scores proves their process isn't diligent:
* $GOOGL.MX is dinged for multiple non-Mexico-specific violations that the other listing isn't
- (1) Insight scores
- (2) ETF management
I think the pipeline between (1) and (2) is probably tight within the company (probably a few big Excel spreadsheets) and the (2) side has a lot of brains.
But the (1) side needs to do more work on the pipeline between those spreadsheets and the Web, and maybe hire more/better software dev help for that. They'd do better to use Postgres as their source of truth.
> (2) ETF management
(1) seems like their (stated) differentiator itself; plenty of organizations already offer ETFs that omit selected companies
I doubt their data is cleaner internally than it is on their website. They're bringing in millions annually from their expense ratios:
https://www.inspireetf.com/etfs
and overpromising/underdelivering on their ability to diligently deliver (1)
https://www.defianceetfs.com/xmag/ ("XMAG, the first ETF designed to provide investors with exposure to the S&P 500, excluding the “Magnificent 7” (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla). XMAG offers a unique opportunity for investors to access the broader market while reducing concentration risk in these dominant tech stocks.")
https://www.aboutschwab.com/mss/story/how-investing-and-gamb... ("Investing and gambling can both be fun. But they are not the same.")
(none of this is investing advice, educational purposes only)
VOOG has returned 18.28%/yr over 10 years vs 15.63%/yr for VOO, a meaningful gap driven almost entirely by Mag 7 dominance. XMAG has no 10-year track record.
The 10-year total return is 327%, and the 15-year average annual return is 14.4%.
Hard to beat.
Yup. Coupling this change with "oh, and btw, we also want the option to be able to only put out annual or biannual earnings reports not quarterly" means "We want to offload even more risk."
That’s the way indexes roll. I don’t invest in indexes for this reason.
There is a separate structural issue with indexes that is being ignored here. Indexes were never really designed to accommodate companies going public so late with high revenue growth. A couple decades ago companies went public when they were so small that they could grow into the index. This reflects changes in the nature and structure of the capital markets, these new IPOs are just a manifestation of this reality.
Annoying they pushed it into the indexes, but like you said, we've also never had a company come out in the 1T range or even the x00B range. These indexes are supposed to represent the market and can't ignore a 1T market cap company for very long.
EDIT
One other thing to add, is that we still do not know what the stock will price at. It's already come down once, and as more information comes out it can continue to come down until it's finally priced the day before the first trading day.