'Investors will go to other indices' after the S&P 500's Tesla snub, market analyst says

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With the S&P 500 choosing to exclude Tesla from its components, two ETF analysts gauge the move's impact on the world of index funds and beyond.

Andrew McOrmond, a managing director at WallachBeth Capital, said the S&P's move may deter investors.But that doesn't mean the S&P's more "hybrid" approach to a rules-based structure — having some rules, but without automatic inclusion or exclusion — has to change, he said.

"To have a little bit of human intervention, ... does that mean that slows them down? Does that mean that people say they're not up to the times?" McOrmond said. "I've seen a lot of rules-based-only investment strategies not do too well in this kind of environment, so, to take a pause and say, 'We're going to look at this and just think it over,' it doesn't mean that Tesla's never going to make it.

McOrmond's best guess as to why Tesla may not have been included this time around was the stock's volatility. The stock suffered its"Let's look at a different stock, just for an example. Let's say

 

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Easy mehn!!

No one will. Too much money and gains tied up.

Retail speculators moving to other indices. Yeah they are really important for a bubble.

They won’t.

This is funny because I just put some extra money in because they rejected an obviously over inflated stock driven company.

ARKK and QQQ FTW!

Sure.

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