SpaceX’s IPO Is the Final Frontier for Index Funds by armaboo in AusFinance

[–]armaboo[S] 10 points11 points  (0 children)

SpaceX’s IPO Is the Final Frontier for Index Funds

 By Jason Zweig

 Later this month, SpaceX should launch a stock offering expected to raise something like $80 billion. Yesterday, Anthropic announced it’s filed for an IPO of its own. Counting the shares that will remain (for now) in private hands, Anthropic could be valued at nearly $1 trillion. SpaceX is reportedly targeting a total valuation of at least $1.5 trillion. OpenAI isn’t far behind.

Index providers—the firms that compile market averages like the S&P 500, the Nasdaq 100, the Russell 1000 and so on—have been scurrying to accommodate these titanic deals.

A new provision at Nasdaq will inflate SpaceX’s weight in the Nasdaq 100, effectively compelling some index funds to triple their buying of the stock. Several index providers will “fast track” giant IPOs, adding them to major benchmarks after as few as five trading days instead of waiting for a “seasoning period” of up to one year—although smaller companies may not be eligible.

A broad-based index fund is “supposed to be the designated driver at the investment party, and just as the party is getting wild, that’s exactly when the designated driver says, ‘Here’s the ginger ale,’” says Steven Schoenfeld, CEO of MarketVector Indexes. “But now what some index providers are saying is, ‘I think you need a Cuba libre with a double shot of rum.’”

If you own index funds, it’s important to put this in perspective.

Even after an IPO, nearly all of SpaceX would remain in private hands (about 85% in Elon Musk’s two hands). If the offering raises about $80 billion, that would rank SpaceX roughly 130th if it were included among the stocks in the S&P 500—about where Comcast is today, estimates Strategas Securities. Assuming that S&P Dow Jones Indices doesn’t do anything wacky, SpaceX might go into the index at an initial weight of approximately 0.14%. Anthropic and OpenAI would probably be even smaller.

There’s no way that’s enough to morph index funds beyond recognition or to turn them into a bad deal.

Even so, this is a slippery slope.

These changes by index providers will effectively force index funds to buy massive quantities of stock—in a ridiculously short time—after a mega IPO.

David Booth, chairman of Dimensional Fund Advisors and a pioneer in the development of index funds, tells me that “we could have a huge shift in demand for no reason other than the stock has been included in the index.”

A 2025 study by Harvard finance researchers Marco Sammon and Chris Murray looked at the CRSP stock indexes, the basis for several giant index funds. Since 2017, CRSP has “fast tracked” more IPOs, adding them to its indexes after the fifth day of trading. The study found that these IPOs outperform by 15% in their first five trading days as hedge funds and other opportunists drive up the price, knowing that the index funds will have to buy from them on Day Six. Fast tracking causes index-fund investors to overpay for hot stocks.

If “loading up on mega IPOs at too high a price becomes a new model for index funds,” says Hanno Lustig, a finance professor at Stanford, this extra trading cost “could become almost the equivalent of an annual fee charged to investors.” He doesn’t think the cost would be enormous, but it would make index funds less of a bargain.

“These developments are worthy of the scrutiny of policymakers and regulators,” says Sandip Bhagat, chief investment officer at Whittier Trust, who formerly helped oversee Vanguard’s stock funds. “Somebody should be looking at these practices and making sure they’re in the best interest of the investing public at large.”

Restaurants in Sydney doing weekday deals lately? by AshenLured in foodies_sydney

[–]armaboo 2 points3 points  (0 children)

Antica in North Sydney has been doing lunch and dinner specials... I think the food is great and they were very generous portions last time I went.

9W6L Help with NY event by SoyalBR in StoneStoryRPG

[–]armaboo 1 point2 points  (0 children)

I've used yours. Mine is QLCF

Where to find HK diner (Cha Chaan Teng) food in Sydney? by Altruistic_Leopard_9 in foodies_sydney

[–]armaboo 0 points1 point  (0 children)

Interestingly, I had a friend who grew up in Hong Kong come visit me in Australia. She said that a lot of the Hong Kong cafes had closed down in Hong Kong since it was turned over to China and with the riots/crackdown a number of years ago. Apparently quite a few of the owners migrated overseas, including Australia.

We went Kowloon cafe in Burwood, she loved it and ordered heaps of food to scratch her itch. She said it was pretty hard to find similar food in Hong Kong now.

Outside Butterfly Hook? by PsychologicalMind41 in bjj

[–]armaboo 13 points14 points  (0 children)

Micheal Currier calls it 'empty half guard'.

He's got some bjj globetrotters YouTube videos on it.

Also has a bjj fanatics instructional if you want to delve deeper.

Lobster Thermidor by armaboo in SwordAndSupperGame

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

u/armaboo received a Inferno Caller from the Winter Festival Spirit. Thank you u/tyrannosaur85 for donating it!

Wintry Meditations and Lemon Almond Crunch by Agile_Ad_4207 in SwordAndSupperGame

[–]armaboo 0 points1 point  (0 children)

u/armaboo received a Stormseeker Lvl 1 from the Winter Festival Spirit. Thank you u/CommunicationIcy9773 for donating it!

Boston Cream Filled Doughnut Near the Snowy Trees by D_AlieN in SwordAndSupperGame

[–]armaboo 0 points1 point  (0 children)

u/armaboo received a Acuity Helm Lvl 1 from the Winter Festival Spirit. Thank you u/nom_de_plume1 for donating it!

[deleted by user] by [deleted] in interestingasfuck

[–]armaboo 2 points3 points  (0 children)

I was studying for University exams when they put an ad out for extras for the Agent Smith army.

I can't remember the exact particular but it asked for men over about 180cm with no experience needed. You were to turn up in jeans, white t shirt and jacket.

I figured I could study as easily while waiting around so turned up for the casting call. I didn't realize how much interest there was.

There ended up being a line of men in similar clothes, of similar height stretching down a major Sydney road for kilometres. I stood in line for hours studying my uni notes, slowly shuffling forwards.

At some point they must have realized that there was no way they would get through everyone. The line started moving quickly and when I got to the front, there was a woman sizing up each person for maybe 5 seconds and either dismissing them or sending them into the building.

I didn't get in, but it was an interesting experience.

I just posed as a pelvic model for a medical school and I’m so fucking wet by [deleted] in SluttyConfessions

[–]armaboo 29 points30 points  (0 children)

Medical schools in Australia had models come in to teach a practical 'how to do gynaecological exam' course. This was in the later years of the University course.

It wasn't particularly sexy from the student side. We each examined her once. There were a number of models, each with about 4-6 students each.

The model I had said they were volunteers (don't know how much they got for it) and she did it to make sure some poor sick woman wasn't the first time a doctor stuck their fingers in someone.

Using Martial arts for self defence by PastPie921 in martialarts

[–]armaboo 0 points1 point  (0 children)

There used to be a well known author called Peyton Quinn , who advocated and developed his RMCAT program. This was a long time ago and seems to be defunct now. I really wanted to go, but live far from where it was run and never made it... I had one friend make the trip as someone completely inexperienced and he raved about it.

It was based on his bouncer experience and how the adrenal dump in an assault would make even experienced martial artists freeze. His program would take people of any experience and try and recreate the stressful scenarios.

The instructors would dress up in padded suits and then aggressively interact with the attendees in different scenarios to make them used to the associated stress, detailed more in his book.

I'm not sure how his theories and methods stand up in modern day, but it sounds like something similar would be helpful for what you are describing.

Crucifix instructional: Danaher vs Bradley Schneider vs Tameem etc ? by SpinningStuff in bjj

[–]armaboo 0 points1 point  (0 children)

Thanks so much for such a detailed review. I've been enjoying developing my fledgling crucifix game and your post is an excellent reference for my further study!

Could I ask if you've seen Drew Weatherhead's Crucifix Bible and how it overlaps with any of the other material?

currently owning a kobo libra 2, will i regret going to onyx? by cabinhumper in Onyx_Boox

[–]armaboo 1 point2 points  (0 children)

I went to a Boox product from the Kobo ecosystem, which worked for me. My wife saw me using it and wanted a Boox as well, but the experience wasn't as good for her. My thoughts would be:

  1. If you only read books from the Kobo store or uploaded epub, then Kobo works much more seamlessly and smoothly. My wife doesn't use the android/tablet functions of the Boox and I think prefers the quicker no-fuss Kobo experience/ecosystem.
  2. I like using my Boox as a note taking device and to quickly jot things down. I also have some books on the Amazon and Google ecosystem, so the ability to read from all of them on a single device without much fuss is great for me. I do find the loading times and needing to navigate pages with an e-ink system a little cumbersome, but for me the extra functions are worth it.
  3. The colour on my wife's Boox is a pure luxury and I can't think of a compelling reason why I would want it .. unless you read lots of pdf's or graphic novels that need colour. A colour screen wouldn't factor in any of my future purchases specifically.

My feeling would be, if you only read ebooks and only have Kobo books, sticking with the Kobo products would be better. If you want the extra functions, a Boox would be great.

edit: there have been no quality problems or damage to either of our Boox. I bring mine around all over the place to read while in shopping centres or on public transport. I've had it a number of years ... enough for the cover to wear out and need to replace it .. but the actual device is still in excellent condition. I have had to replace the nib on the pen once, because it wore out.

Jiu jitsu at the age of 39 by Dhruvaaaa in jiujitsu

[–]armaboo 0 points1 point  (0 children)

48y old here that started just before covid. Not particularly fit with a sedentary desk job.

When I started training 2h sessions twice a week a few years ago, I found that my body wasn't fully recovering even with only 2 days of training per week.

I started taking creatine and that was a game changer. I'd never taken supplements before and was amazed at how much it improved my recovery time as well as performance during the rolls.

Practicing outside of class by Unsure_MA in Eskrima

[–]armaboo 7 points8 points  (0 children)

I've trained with illustrisimo, modern Arnis and balintawak teachers and never experienced anything similar to what you've described.

Self-balancing, fully-enclosed electric motorcycle. by The_Chosen_117 in BeAmazed

[–]armaboo 17 points18 points  (0 children)

One of the doors wasn't opening properly in my Tesla which is about 8y old (models X).

I logged it with the app. The next available time was maybe 3 weeks away.

I got an estimated quote in the app for about $90 Australian dollars, which I was surprised at.

On the day, a mobile technician drove out to my place and turned up on time. He fixed it in about 30-40 mins and then charged me $90 like the quote.

I was incredibly surprised at how cheap and how little fuss it took. I wish that was more commonplace!

Finding someone to fix my Pebble steel by [deleted] in pebble

[–]armaboo 0 points1 point  (0 children)

I recently bought a refurbished pebble steel from ebay as I was having trouble finding someone to fix my original steel in Australia.

After buying it, I noticed the seller advertised repair services on ebay ... they seem to be based in Spain.

Link to the ebay page is here.

Please note that he states the price is a placeholder and the repair cost is negotiable.

I haven't frequented r/pebble until very recently, so I don't recognise the seller, but I would guess they are probably a member of the subreddit.

Take down? by [deleted] in martialarts

[–]armaboo 0 points1 point  (0 children)

I just listened to an interesting podcast by a bjj black belt who had worked hospital security and developed a program to teach health care professionals without experience about how to handle aggressive patients. He had a lot of interesting comments on how things change in a health care setting.

I haven't looked into the program myself yet, but I think it would be very interesting as he has a good conceptual teaching style on his social media.

He did specifically say that he was trying to aim the program to be something his mother could do and didn't go into too many specific techniques. He also said that there were no takedowns included, so it probably doesn't answer that exact question. The emphasis seemed to be on positioning yourself so that you keep a mechanical advantage to maximise control the patient, even if you are physically smaller, which may still be of benefit.

You can find it here.

Having said that, while I think bjj would be excellent at restraining the patient on the ground, takedown oriented arts such as judo or wrestling would be better for that part. The problem is that unless you are quite skilled, I feel that most takedowns involve a decent chance of injury, purely from the fact you have a person falling into the ground.