To me it's more about how real the financial strength of the company is versus being propped up on some shady accounting. Not sure if that was the case with Carvana or any of these new IPOs, but personally I have my nest egg in the S&P and don't want sharks abusing the index for their pump and dump exit strategy.

No, but how about the 500 that

have been profitable under GAAP accounting rules for at least 12 months

have a public float of at least 10% (so that new investors have some governance rights)

have traded for at least 12 months (and won't have sudden changes in public float or shares available due to lockups and recent listing)

> Ah, so you'd like the passive broad market index which contains the 500 biggest good companies?

And a reminder: not just "good" now, but good over time.

Good companies turn bad (Apple almost went bankrupt), and bad companies can become good (see again Apple; in the UK, recently Rolls-Royce).

That's what "value funds" do.

You can just pick stocks - if you pick a fairly low number of large stocks in broad categories with correct weight, you will track the index.

ESGV

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