Scottish Mortgage Trust

Thrugelmir

Username999 said:

If Tesla is added to the SP500 it will be one of the biggest additions on record.
Trackers will have to sell down other stocks to get the required ratios I think.

Will be larger than around 95% of the existing index. 

Aminatidi

I was considering a small 5% or so position in this so the 7% drop today certainly has me thinking.

csgohan4

Aminatidi said:

I was considering a small 5% or so position in this so the 7% drop today certainly has me thinking.

maybe a sign of things to come and people panicking

AnotherJoe

More like a sign of profit taking. Its best not to get caught up in these fluctuations and think you can time the market short term.

If you have faith in the management, just hold. If you dont, why hold the shares?

sg1000

I have read all these comments with much interest...all enlightening.  The drop of just under 7% today means SMT is no longer 25% of the portfolio, so I can rest easy, whilst trying to build up a core fund (HSBC Global Strategy).

Audaxer

sg1000 said:

I have read all these comments with much interest...all enlightening.  The drop of just under 7% today means SMT is no longer 25% of the portfolio, so I can rest easy, whilst trying to build up a core fund (HSBC Global Strategy).

That's good, but are you regretting not rebalancing by selling some SMT when it was 25% of your portfolio?

dont_look_now

Username999 said:

If Tesla is added to the SP500 it will be one of the biggest additions on record.
Trackers will have to sell down other stocks to get the required ratios I think.

Yes, that's what S&P500 trackers will be doing.

This is one reason why I hold a "Total Market" tracker for the US, not an S&P500 tracker. So my US tracker already holds Tesla, at its market weight, and its S&P500 inclusion will be a complete non-event for me.

(Note: "total" doesn't really mean "total", but it does mean including any company of significant size, plus some of insignificant size.)

sg1000

Audaxer said:

sg1000 said:

I have read all these comments with much interest...all enlightening.  The drop of just under 7% today means SMT is no longer 25% of the portfolio, so I can rest easy, whilst trying to build up a core fund (HSBC Global Strategy).

That's good, but are you regretting not rebalancing by selling some SMT when it was 25% of your portfolio?

Not really, Audaxer. Haven't sold anything in the ten years I have been "investing", albeit I started at a small monthly drip feed.  I'm not looking to crystalise anything for at least another eight years....so it has time to recover.

Username999

dont_look_now said:

This is one reason why I hold a "Total Market" tracker for the US, not an S&P500 tracker. So my US tracker already holds Tesla, at its market weight, and its S&P500 inclusion will be a complete non-event for me.

(Note: "total" doesn't really mean "total", but it does mean including any company of significant size, plus some of insignificant size.)

This one?
https://investor.vanguard.com/mutual-funds/profile/overview/VTSMX/portfolio-holdings

Audaxer

sg1000 said:

Audaxer said:

sg1000 said:

I have read all these comments with much interest...all enlightening.  The drop of just under 7% today means SMT is no longer 25% of the portfolio, so I can rest easy, whilst trying to build up a core fund (HSBC Global Strategy).

That's good, but are you regretting not rebalancing by selling some SMT when it was 25% of your portfolio?

Not really, Audaxer. Haven't sold anything in the ten years I have been "investing", albeit I started at a small monthly drip feed.  I'm not looking to crystalise anything for at least another eight years....so it has time to recover.

If SMT recovers and shoots up again and becomes say, 30% or more of your portfolio, it would most likely be beneficial to you to rebalance by selling some of SMT and buying more of other funds/ITs in your portfolio to get back to your preferred asset allocation.