Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable

This site may earn commission on affiliate links.
i didn’t read the WSJ article in depth but even if they break the buying into tranches, that was already implied in the original s&p announcement. so today we should not be surprised to see more than just a one time event to complete the ‘addition’ to s&p, no?
Re-read the S&P announcement. The addition date WILL be Mon, Dec 21, 2020 no wiggle room at all.

The only issue is the committee asking for advice from the investment community as to whether it will be done in 2 tranches (Dec 14+21) or a single tranche on Dec 21. There was also a question as to whether those who preferred 2 tranches wanted 1/3rd + 2/3rds, 50:50, or 2/3rds + 1/3rd.

No, the WSJ fantanzing about 2021 Q1 is just that: FUD designed to shake the chairs out from under the weak longs, would-be front-runners, and 'mo-mo' traders. And the MMs+hedgies are workin' it hard this a.m. :p

I'll sell in Aug 2027 (for Million$). :D

Cheers!
 
Re-read the S&P announcement. The addition date WILL be Mon, Dec 21, 2020 no wiggle room at all.

The only issue is the committee asking for advice from the investment community as to whether it will be done in 2 tranches (Dec 14+21) or a single tranche on Dec 21. There was also a question as to whether those who preferred 2 tranches wanted 1/3rd + 2/3rds, 50:50, or 2/3rds + 1/3rd.

No, the WSJ fantanzing about 2021 Q1 is just that: FUD designed to shake the chairs out from under the weak longs, would-be front-runners, and 'mo-mo' traders. And the MMs+hedgies are workin' it hard this a.m. :p

I'll sell in Aug 2027 (for Million$). :D

Cheers!

Is there a room to tweak the weightage by Dec-21, for example, “we will in 2 tranches add 0.5% (0.25+0.25) weightage by Dec-21“.
When S&P says they will add by a date, are they bound to 100% normal weightage by that date?
 
  • Informative
Reactions: Tes La Ferrari
Is there a room to tweak the weightage by Dec-21, for example, “we will in 2 tranches add 0.5% (0.25+0.25) weightage by Dec-21“.
When S&P says they will add by a date, are they bound to 100% normal weightage by that date?

My understanding is they have to be specific in the weighting amount for each date. The goal of these ETFs are to mirror the S&P500 EXACTLY. The goal is to eliminate risk, not make money (i.e. exceed S&P 500). Therefore, if they didn't specify a certain percentage of weighting, and left it up to the individual managers, there would be massive deviations from the S&P 500. Think if an ETF manager bought all of the shares for the full weighting on the first date, then the stock tanked. The S&P 500 would be much higher than that index fund. Obviously vice-versa applies as well. If you want a manager to actively manage, you don't pick an index tracking ETF.
 
~$220 swing (in old-money)...

Edit: I'm an idiot, 5x not 4x = $266.45 swing, doh!

What's the betting we close above $600 anyway? :D

tenor.gif
 
Last edited:
~$220 swing (in old-money)...

tenor.gif

Yep and we saw it coming with that well timed WSJ article over the weekend suggesting something that probably has a very small chance of happening. I had some dry powder waiting for something like this so grabbed another 40 shares at 568. This is essentially affirmation that nothing unusual should be expected in the S&P announcement today. That is my read anyway. I think S&P will announce two tranches but will not change the final inclusion date of 12/21. Not advice.
 
Last edited:
My understanding is they have to be specific in the weighting amount for each date. The goal of these ETFs are to mirror the S&P500 EXACTLY. The goal is to eliminate risk, not make money (i.e. exceed S&P 500). Therefore, if they didn't specify a certain percentage of weighting, and left it up to the individual managers, there would be massive deviations from the S&P 500. Think if an ETF manager bought all of the shares for the full weighting on the first date, then the stock tanked. The S&P 500 would be much higher than that index fund. Obviously vice-versa applies as well. If you want a manager to actively manage, you don't pick an index tracking ETF.
I meant if there’s room for S&P to come to a decision to add by Dec-21 in two tranches, but totaling only to part of the normal weightage. They didn’t mention weightage so far, so they have room with that?