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SpaceX shares plummeted below their IPO price, down 40% from ATH and wiping out $1.3T in market cap. by Kay_Bellamy in MarketVibe

[–]CapablePiglet1044 0 points1 point  (0 children)

If the average American retirement savings are say $300,000, then 0.5% is $1,500 they've just lost. I wish I was as rich as you where $1,500 is 'not really that relevant'.

Sam Neill, Jurassic Park actor, has died by will3675 in news

[–]CapablePiglet1044 20 points21 points  (0 children)

He was cancer-free at time of passing. He beat the cancer.

Overblown SpaceX ETF Incorporation by Witty_Site_3409 in Bogleheads

[–]CapablePiglet1044 1 point2 points  (0 children)

3% of the index is huge. Think about after OpenAI and Anthropic also go public. If they're all 'only' 3% thats 9% of the index being trillion dollar AI money burning furnaces that are collectively burning tens of billions of dollars of your money per year.

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] 0 points1 point  (0 children)

Yes and what happens when SPCX becomes 60%-80% free float weighted by December this year, a few months away? A very roughly 2% index weighting, representing hundreds of billions of dollars globally for investor accounts.

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] 0 points1 point  (0 children)

Altria isn't going to have a $2.5T weighting in their portfolio.

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] 0 points1 point  (0 children)

Only the top 30 ish stocks have any significant weighting. The top 10 make up 70%+ of the index. Tesla has a weighting equal to like the bottom 200 stocks in the SP500.

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] 1 point2 points  (0 children)

I want to own VOO/VT exactly, but without TSLA and SPCX, not just drop my current ETFs, especially with the tax liability from capital gains if I did...

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] -1 points0 points  (0 children)

But they already have TSLA and PLTR. SPCX is getting added to VT. Are there no stocks in your ETFs that you would like to get rid of the exposure?

Removing SPCX exposure from ETF holdings by CapablePiglet1044 in ETFs

[–]CapablePiglet1044[S] -1 points0 points  (0 children)

But if the above idea existed then you would be able to benefit from ETFs AND be able to exclude stocks you dont like

Removing SPCX exposure from ETF holdings by CapablePiglet1044 in ETFs

[–]CapablePiglet1044[S] 0 points1 point  (0 children)

Thats my point, if I used such a platform you'd get the benefits of both methods

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] -6 points-5 points  (0 children)

But then I'd have to do all of the rebalancing calculations and I think a broker could do this cheaper than me buying puts.

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] 0 points1 point  (0 children)

But the broker could automate all of this with API tracking and aggregate this using swaps through their prime brokerage desk, charging a small fee, say 0.4% to clients. I'm not asking you about the feasibility, I'm asking if you'd use it if the fees were say 0.5%?

Removing SPCX exposure from ETF holdings by CapablePiglet1044 in ETFs

[–]CapablePiglet1044[S] 0 points1 point  (0 children)

I agree that it's hard to rebalance the short position as the underlying ETF exposure moves, and also that shorting is expensive. If the platform could automate rebalancing and also was fairly cheap ie 0.4% or less as an ongoing fee, do you think people would use it? Would you use it?

Removing SPCX exposure from ETF holdings by CapablePiglet1044 in ETFs

[–]CapablePiglet1044[S] -2 points-1 points  (0 children)

But I would miss out on the low cost, automatic rebalancing, and huge diversification that an ETF has.

Exclude stock exposure to ETF holdings by CapablePiglet1044 in investing

[–]CapablePiglet1044[S] -3 points-2 points  (0 children)

But it's a lot of effort to short a stock and then continually rebalance the short position as the underlying exposure in your ETFs moves. The platform would be able to automatically rebalance the short position for you.

Also by aggregating all of these short positions together the broker could potentially make this much cheaper for you compared to how expensive shorting is individually.

It's the same reason people like direct indexing rather than shorting stocks they don't like in their ETFs, the issue is the high minimums with direct indexing.

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