No Tesla and Meta in Factor Indexes: What does that mean?

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astrubal_hanibal
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No Tesla and Meta in Factor Indexes: What does that mean?

Post by astrubal_hanibal »

Currently, there's no Tesla and Meta in Global Factor Indexes holdings: What does that mean?

If you currently search the holdings of world single-factor and multi-factor indexes, there seems to be no Tesla and Meta there.
At least, that's true for the iShares edge line of ETFS...
https://www.ishares.com/uk/individual/e ... -ucits-etf
https://www.ishares.com/uk/individual/e ... -ucits-etf
https://www.ishares.com/uk/individual/e ... -ucits-etf
https://www.ishares.com/uk/individual/e ... -ucits-etf

What conclusions can be taken from this? What does it mean?
Last edited by astrubal_hanibal on Tue Feb 04, 2025 4:36 pm, edited 2 times in total.
AdrianC
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Re: No Tesla and Meta in Factor Indexes: What does that mean?

Post by AdrianC »

Avantis U.S. Large Cap Value ETF has Meta as its largest holding.
It does not hold Tesla.
https://www.avantisinvestors.com/avanti ... value-etf/

Crudely:
Meta PE 29
Tesla PE 192

Meta meets the Avantis criteria for inclusion based on its profitability. Clearly, Tesla does not.

I expect it's the same with iShares.
Topic Author
astrubal_hanibal
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Re: No Tesla and Meta in Factor Indexes: What does that mean?

Post by astrubal_hanibal »

No meta in IShares Value: https://www.ishares.com/uk/individual/e ... -ucits-etf
I am talking about global indexes, not US.
Nonetheless, no meta in ishares USA value either: https://www.ishares.com/us/products/251 ... factor-etf

From global perspective, are these memestocks?
how about the SP500? Is it becoming a memeindex? :confused
Maybe the index providers could provide a memestock index for these cases. The magmeme index! Or even better! An inverted magmeme index! :moneybag :-p
Last edited by astrubal_hanibal on Tue Feb 04, 2025 4:40 pm, edited 6 times in total.
toddthebod
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Re: No Tesla and Meta in Factor Indexes: What does that mean?

Post by toddthebod »

astrubal_hanibal wrote: Tue Feb 04, 2025 1:48 pm Currently, there's no Tesla and Meta in Factor Indexes holdings: What does that mean?

If you currently search the holdings of world single-factor and multi-factor indexes, there seems to be no Tesla and Meta there.
At least, that's true for the iShares edge line of ETFS...
https://www.ishares.com/uk/individual/e ... -ucits-etf
https://www.ishares.com/uk/individual/e ... -ucits-etf
https://www.ishares.com/uk/individual/e ... -ucits-etf
https://www.ishares.com/uk/individual/e ... -ucits-etf

What conclusions can be taken from this? What does it mean?
Meta is in the iShares technology ETF, and Tesla is in the consumer discretionary ETF. They are both in the S&P 500 Growth ETF.

Meta is in the second ETF you linked also, and it's the top holding on the fourth one.
Topic Author
astrubal_hanibal
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Re: No Tesla and Meta in Factor Indexes: What does that mean?

Post by astrubal_hanibal »

toddthebod wrote: Tue Feb 04, 2025 4:05 pm
Meta is in the iShares technology ETF, and Tesla is in the consumer discretionary ETF. They are both in the S&P 500 Growth ETF.
None of those are factor indexes. Technology and consumer discretionary are sectors, not factors. And from the few I know, Growth is not a factor.https://www.bogleheads.org/wiki/Fama_an ... ctor_model.
Or is it? Can somebody clarify whether growth is a factor?
toddthebod wrote: Tue Feb 04, 2025 4:05 pm Meta is in the second ETF you linked also, and it's the top holding on the fourth one.
Which? This? https://www.ishares.com/uk/individual/e ... -ucits-etf
Or this? https://www.ishares.com/us/products/251 ... factor-etf
When clicking "Holdings" and searching in the search box I can't find it in any of these.
Topic Author
astrubal_hanibal
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Re: No Tesla and Meta in Factor Indexes: What does that mean?

Post by astrubal_hanibal »

astrubal_hanibal wrote: Tue Feb 04, 2025 4:17 pm
toddthebod wrote: Tue Feb 04, 2025 4:05 pm Meta is in the second ETF you linked also, and it's the top holding on the fourth one.
Which? This? https://www.ishares.com/uk/individual/e ... -ucits-etf
Or this? https://www.ishares.com/us/products/251 ... factor-etf
When clicking "Holdings" and searching in the search box I can't find it in any of these.
Ah ah! I've found it! It's in the Quality indexes... RIght, I was wrong about Meta. But not about Tesla...
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Re: No Tesla and Meta in Factor Indexes: What does that mean?

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