AMC Gets ‘Low Priced’ Tag in New ETF Hit by Indexing Quirk

AMC Gets ‘Low Priced’ Tag in New ETF Hit by Indexing Quirk

AMC Gets ‘Low Priced’ Tag in New ETF Hit by Indexing Quirk AMC Gets ‘Low Priced’ Tag in New ETF Hit by Indexing Quirk - Oops!Something went wrong.Please try again later. (Bloomberg) -- The biggest holding in Direxion’s new budget-stock fund is one of the most famously expensive shares in the country. A quirk of indexing means AMC Entertainment Holdings -- currently pricier than about 90% of S&P 500 members -- has yet to exit the gauge of cheap shares tracked by the exchange-traded fund. As a result, the movie-theater operator and Reddit favorite accounts for almost 7% of the Direxion Low Priced Stock ETF (ticker LOPX) in its first day of trading on Thursday. While the product targets companies with a share price between $2 and $5, AMC closed Wednesday at $40.78. The paradox is the latest headache spurred by Wall Street’s unprecedented indexing boom. As more cash tracks benchmarks, and market swings turn extreme, these slow-moving instruments can leave investors exposed to companies that no longer reflect their aims. Most indexes rebalance every quarter or semi-annually. Read more: …
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