The problem isn’t that you’re invested in the index. The problem is that the index decided it wanted to change its rules to include companies that are not profitable. I still remember the days when you needed to be profitable for x quarters and have a minimum amount of float to be listed in an index. That changed overnight and we all know why.

To the same point I also don't want the index itself picking and choosing which companies to apply which rules to.

Okay then why is SPCX going to be weighted 3x its actual float in the Nasdaq? A rule made just for SPCX.

Yeah but Matt Levine is wrong.

1) Index funds and ETFs are highly active.

They're just low-cost due to largely algorithmic decisions but at all of the edge cases manual _active_ decisions are made.

IIRC, in this podcast Vanguard goes into detail about all of the active decisions they do [1]. It's long because uh, they do a lot.

2) You're in the index fund game because "you liked that index". There are literally thousands of ETFs. Saying "you want the market" is just wrong, you wanted a specific slice of the market and if the ETF changes the slice under you then that feels like a bait and switch.

[1]: https://www.youtube.com/watch?v=hQVz_VGJNnY

TIL about float for stock, thanks.