What Happened
Asset Managers Set Aside Cash for Blockbuster Listings
US mutual funds and passive index funds are preparing to add upcoming blockbuster IPOs like SpaceX and OpenAI to their portfolios by setting aside more cash and potentially offloading existing holdings in large-cap stocks. According to analysts, the potential inclusion of these companies in major indexes like the Nasdaq 100 and S&P 500 could force passive funds to sell down existing holdings in other large-cap stocks. The move comes as blue-chip indexes roll out new rules that are expected to speed up the addition of newly listed megacap companies to the benchmarks, as reported by Reuters.