The Nasdaq-100 Curse: SpaceX Just Proved Your Index Fund Is a Trap
SpaceX joined the Nasdaq-100 to fanfare β and immediately tanked. This isn’t bad luck. Index inclusion is a mechanical trap: active traders front-run the forced buying of passive funds, leaving retail investors holding the bag. Your ‘safe’ index fund isn’t protecting you; it’s making you the exit liquidity for smart money. Here’s how the game works and what you can do about it.