Summary

• Inclusion of SpaceX, OpenAI, and Anthropic in the S&P 500 will not materially impact their price trajectories or investor outcomes.
• Index inclusion effects, such as price bumps, have become smaller and more transitory, with recent studies showing little long-term impact.
• Passive investing's rise has eroded active management's value proposition, as index funds consistently outperform active funds across styles and geographies.
• S&P's decision to require a one-year trading history for index eligibility is pragmatic, ensuring orderly transition rather than investor protection.

Over the last few weeks, attention has (rightly) been focused on three potentially trillion dollar companies all lined up to go public, and much of the discussion has been about what SpaceX, Anthropic and OpenAI are worth (and will be priced