Tesla entering the S&P 500?

#1

My guy Jeremy!! The father of fiduciaries lol

If a stock like tesla is approaching being selected for the snp500 … the snp500 indexes have to purchase it correct? So in theory VOO would have to buy that stock? That must help that stock but more importantly does it bring up the index? Because its buying such a high priced stock like tesla at the time? Or do they do some maneuvering to compensate for high price stock being brought in? I hope explained this well enough…

Thank you as always

#2

The answer to all of the above is “the market is efficient”. So it’s not going to impact the price of Tesla nor the price of the S&P 500. And there’s nothing you can do to capitalize on the knowledge that the index may change in that way. The best way to make money in the market is to buy and hold index funds, and avoid trying to play games like this :slight_smile:

#3

I agree. Im still buying my monthly vti. More or less a question out of curiosity than actual Strategy. Thank you

1 Like