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Watch These ETFs Amid the Tesla Addition to the S&P 500


December 18, 2020
Amid an already hectic trading session, as investors contend with larger-than-normal trading volumes due to quadruple witching, the phenomenon when options and futures on indexes and equities expire, electric automaker Tesla is on the precipice of joining the ranks of the S&P 500, in what will be the largest rebalancing in the history of that index.
Tesla is set to begin trading on the S&P 500 on Monday, but all the trading action commences at the close on Friday, generating what could be such a potentially significant trading volume that some traders are concerned could result in problems at the close. ....

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Traders brace for wild action and historic volume ahead of Tesla's entry into the S&P 500


Traders brace for wild action and historic volume ahead of Tesla s entry into the S&P 500
CNBC
12/18/2020
© Provided by CNBC
Traders work on the floor of the New York Stock Exchange.
Electric vehicle maker Tesla is poised to enter the S&P 500 in what will be the largest rebalancing in the history of that index.
The new index with Tesla in it begins trading on Monday, but all the trading action happens at the close on Friday.
The trading volume will be so heavy, some are concerned it could result in fireworks at the close.
S&P estimates that approximately 129.9 million shares of Tesla will need to be purchased to add to the S&P 500. At the current market price of $655, indexers would need to buy $85.2 billion in Tesla stock at the close on Friday. However, there are billions more that will need to be bought by closet indexers that do not officially pay S&P, but nonetheless track the index. No one knows how much these closet indexers will buy ....

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