With schemes like SpaceX, and the general number of large-cap-but-negative-earnings companies trading on the market, I feel like the conventional wisdom of DCA and chill / just passively buy the index will turn into an underperforming strategy vs a slightly more active or opinionated approach.
In my understanding some index funds i.e. FTSE Russel ones will include spacex with the weight based on the floated stocks, so in practice the weight in the index will be small enough in All Cap etc indices. So I decided for myself it is not a cause for concern. But I think now it is the time to look for index providers who do not decide to bend the rules for short term gain (i.e. S&P and Nasdaq).
SpaceX is responded to the float issues by having a continuous increase in the unlocked stock available on the market. And NASDAQ was the first index to promise a quick inclusion of spacex.
But isn’t “passively buying the index” still exposed to this, at least if you’re not buying “equal weight” version? Dividend stocks sounds even more appealing to me, I read that as “companies that are generating stable profits now”.
Just buy ETFs of index funds that only include dividend paying stocks
Another factor. TINA. There is no alternative.