Dan Bortolotti

that it's not a huge issue for index fund investors.

But what's changing here is the size of the companies we're talking about now.

SpaceX is several orders of magnitude bigger than any recent IPO.

What used to be, let's call it a relatively trivial observation,

is no longer so trivial and could actually create some significant issues, at least in theory.

That's the concern.

Is that fair?

I think that's a really important point to stress.

You touched on it earlier, Ben, when you said it seems like people are always kind of looking for the fatal flaw in traditional indexing.

And these are structural inefficiencies.

They're not ideal.

If we could snap our fingers and make them go away and smooth them over, then sure, we would do so.

But we can't do that without all kinds of other knock-on effects that are likely to be more detrimental.

than any improvement we might get by changing this specific rule.

So we always have to be very careful that just because we're talking about this as an issue, as a genuine concern, we're not saying abandon your strategy if you're a committed indexer, because now all of a sudden it's fatally flawed.

That's the wrong takeaway from any of this.

And it fundamentally changes the issue too, doesn't it?

So it goes some way to reducing this enormous concentration.

There have been some other changes.

The one that comes to mind I can think of is the S&P TSX capped