Tesla going in S&P 500 is what the smart-beta geeks warned about
Tesla going in S&P 500 is what the smart-beta geeks warned about Gauge’s deletions beat megacap additions by 24% in next year. Tesla is ‘beautiful illustration’ of indexing flaws: Arnott. Compártelo: TeslaInc. may prove to be a drag on the S&P 500 when it enters the index after such a gigantic rally? You’re not alone. There’s a group of Wall Streetdata nerds who have been making a similar case against traditional stock benchmarks for years. Some of them are quants who fly the flag of “smart beta,” that hybrid of active and passive management that holds among other things that...
Source: elintransigente.com