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0 pointsHWR_141mo ago0 comments

Index funds make legal commitments to replicate the entire index. I have no idea why you think they use sampling.

The whole point of an index fund is I'm not paying someone to try to guess what stocks are going to under/over perform the S&P.

And when they are required to buy is not really a mystery either. they have very little discretion.

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But normally they wait a year for new companies, whereas Sam and friends have managed to buy some officials and have made it a day-one-rug-pull.

NASDAQ did changes to be able to fast track SpaceX, S&P is looking at the same as far as I understood: https://finance.yahoo.com/news/new-rule-could-fast-track-spa...

Many Vanguard index funds use sampling, in fact. It's more complicated than you think.

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