Jack Bogle created the index fund on a foundational premise hat passive diversifcation across proven and stable businesses removes stock-picking risks and delivers market returns at a neglible cost. The index fund has become the de facto means of investment for almost every retirement fund and retail investor today.
Further, ETFs have made most mutual funds moot, which grants even more power to the average US investor because the cost of investing is a fraction of what it would be.
However, recent changes to the NASDAQ seasoning period, specifically for the SpaceX IPO to launch on their exchange, will create a dangerous precedent that will effectively destroy the power of the index fund, and b, the ETF.
There's multiple layers to this, and a bounty of conspiracies, but here are the facts: Overvalued IPOs give early investors the means to legally rug pull. early investors buy in, retail investors pour money in, then early investors cash out while the stock price is high. Classic wallstreet financier class bullshit.
Index funds were somewhat insulated from this due to what's called a seasoning period. NASDAQ (exchange AND indices) recently changed the seasoning period for the NAS
