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0 pointsdragontamer2d ago0 comments

SPY (top S&P500 fund) has $700B assets under management.

VTI (Vanguard Total ETF) is $600B + VTSAX (Vanguard Total Index Admiral) is $489B. QQQ is another $480B AUM.

So we're easily talking about $Trillion++ for funds that are described by this post. (VTI, VTSA, QQQ alone). With dozens and dozens of more funds that are participating in this whole "passively buy stocks" scheme being discussed.

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skybrian2d ago· 1 in thread

It also matters how much they weight it.

> So even though SpaceX would be a $1.75 trillion company, many index funds that include it would have to treat it like a $70 billion company. In Vanguard's total-market ETF, then, SPCX would enjoy a similar weight as $73 billion retailer Ross Stores (ROST) — currently the 157th-largest stock in VTI, accounting for about 0.1% of its assets.

https://www.kiplinger.com/investing/index-funds-and-mega-cap...

So someone with $10,000 of VTI might have $10 of SPCX. Not a big loss for them even if it went to zero, and the whole point of that index is to have some of everything.

(QQQ is a different story.)

dragontamerOP2d ago

With $1 Trillion or so in assets between VTI and VTSAX, that 0.1% is a guaranteed purchase order of $1 Billion in SpaceX stock purchases. A sizable minority of the current float.

This is important because Anthropic and OpenAI (and likely future companies) are planning to continue to take this money from VTI / VTSAX fund holders.

I'm under no assumption that SpaceX is unique here. This is now "the new normal" moving forward, unless a new law is introduced (or the rules otherwise change).

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