Research Affiliates founder Rob Arnott said potential listings such as SpaceX, Anthropic PBC and OpenAI may weigh on the broader market over several years after an S&P Dow Jones Indices index decision.
Mega IPOs including SpaceX, Anthropic PBC, and OpenAI could pull tens of billions of dollars away from existing stocks and become a multiyear headwind for the broader market, Research Affiliates founder Rob Arnott said. He said the pressure may build gradually after S&P Dow Jones Indices, the benchmark provider, decided not to quickly add such unusually large new listings to its indexes. The warning points to how blockbuster IPOs can reshape passive fund flows when major benchmarks eventually absorb them, forcing index-tracking investors to buy the new entrants and sell incumbent holdings to make room.