Tesla Finally Joins the S&P 500
Thereby making the index even more concentrated, high-growth, and volatile.
The news that Tesla (TSLA) will soon be entering the S&P 500 left me triply entertained.
First, I had not realized that Tesla was not already in the index. Perhaps there is a reason that my columns are free. Second, the announcement served as a reminder that the S&P 500 is a strange construction, being neither a pure representation of the largest U.S. stocks nor a “strategic-beta” benchmark that aims to outgain the norm. It is mostly the former, with a splash of the latter.
John Rekenthaler has a position in the following securities mentioned above: VTI. Find out about Morningstar’s editorial policies.