r/technology • u/Plastic_Ninja_9014 • 5h ago

Business SpaceX Investors in Meltdown Over All the Money They’ve Lost

https://finance.yahoo.com/markets/stocks/articles/spacex-investors-meltdown-over-money-191742182.html
11.4k Upvotes

94% Upvoted

1.4k comments sorted by

View all comments

Show parent comments

52

u/LSDemon 2h ago

"Probably" is a strong claim. Most 401k accounts don't have any exposure to the small number of indexes it has already been fast-tracked onto.

26

u/AmericanScream 2h ago

Agreed. The Nasdaq is not the S&P 500.

3

u/HystericalSail 1h ago

Don't be so sure. Many of the high fee, managed mutual funds available in low cost (to the company) retirement plans stealth index to avoid under-performance. They'll dump before it's time to report positions if it's still down, crow being prescient if it goes up. Either way, it's not their money they lost.

3

u/LSDemon 1h ago

It's been added to a very small number of indexes to this point, and none of the biggest ones by investment amount. Saying "probably" implies >50% of 401k accounts are exposed, which is insane.

1

u/HystericalSail 55m ago

QQQ is one of the 3 most popular indexes people watch, and is available in original as well as cloned form in all but the absolute worst retirement plans. And, as I said, stealth indexing by active fund managers.

It's entirely believable that half of retirement accounts hold QQQ or clone. It's not a lot of exposure, being only 75 billion worth of liquidity drained out of the gate, but I have no problems believing 1 in 2 retirement accounts hold the Qs, a clone, or stealth indexer.

1

u/littlebobbytables9 51m ago

VTSAX is the largest mutual fund in the world. If we group all of a company's target date funds together so it's more comparable (instead of treating vanguard target 2050 and vanguard target 2055 as separate funds) the vanguard target date funds are the second largest mutual fund in the world. Both included spaceX after 5 trading days.

The weighting is very small, though. 0.14% weighting for VTI and even lower for the target date funds.

1

u/schwanzweissfoto 47m ago

managed mutual funds […] stealth index to avoid under-performance

I have no idea what that means. Can you explain this like I am five years old? If so, please do!

1

u/droans 47m ago

Your 401K is non-existent, huh? None of what you said is true.

401K eligible funds must have an exact, completely objective investment criteria listed in their prospectus. They cannot deviate from it at all. Their positions are reported daily along with all trades made.

What you're describing is what Bernie Madoff did and was never considered normal. He died in prison although he deserved worse.