QQQ adds SpaceX sounds impressive, but is it enough?
I read the article by EBC Financial Group "QQQ Adds SpaceX: 5 Things Nasdaq-100 Investors Need to Know" and I mostly agree with it.
My only addition is that I think people are getting a little too caught up in the headline. "QQQ adds SpaceX" sounds massive, but unless you're looking at the actual index weight, it doesn't necessarily change much for your portfolio today.
The interesting part starts after the rebalance. Once the forced ETF buying is out of the way, we'll get a better idea of what the market actually thinks SpaceX is worth. If the company keeps executing and eventually increases its public float, its weight in QQQ can naturally grow over time.
So for me, the inclusion is cool, but it's not the investment thesis. The business execution from here is.
Mollitia qui a vel at in aperiam voluptatem fugiat. Accusamus alias officia omnis libero officiis dolorem.
Voluptas velit aut nihil est et et. Ut voluptas sed tempore tenetur facilis ut dolor consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...