The hidden cost of an IPO

On June 4, S&P Dow Jones may have saved your S&P500 index funds from a hidden bill. The index provider refused to relax its eligibility criteria for the SpaceX IPO. In the media, that was portrayed as a setback for Musk. For index investors, however, it was good news. They were spared from buying shares in an extremely overvalued, loss-making company.