Mega-Cap IPOs Had Smaller Impact on Index-Trackers than Expected -- Market Talk

1403 GMT - Mega-cap initial public offerings didn't have significant impact on the performance of index-tracking funds, MSCI chief researcher Ashley Lester says. Several index providers changed rules to fast-track the addition of large, newly-listed companies, including SpaceX. The changes prompted questions over whether their inclusion would significantly change the composition of index funds. "The answer is less dramatic than news coverage would lead you to believe," Lester writes. New listings amounted to less than 2% of total U.S. market capitalization, Lester says. Because index funds weight toward the amount of a company's stock that is tradeable, rather than its total market capitalization, the impact was minimal, Lester says. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

July 31, 2026 10:03 ET (14:03 GMT)