With tesla going into the index on the 18th, is anyone else concerned the etfs will be buying it at its peak price and at a fairly significant %.
Do you think it would be an over reaction to back out of the s&p 500 tracker for now before the addition and move the money elsewhere for a while and see if the index falls after?
In reality TSLA effect on S&P500 is really overblown.
The Market Cap of S&P 500, which is above ~30 trillion dollars currently. TSLA market cap is 600 billion dollars, which makes it 2% of entire ETF cap, if it goes from current price to ZERO S&P 500 would dip those same 2%. Not an end of world, rite?
Market cap source: