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Hanno Lustig draws attention to the hidden fees encountered by passive investors when a large company with a small float is added to stock indexes.
He cites data from Yahoo’s inclusion in the S&P 500 in 1999, where passive investors effectively paid between 15 and 30 basis points during the process.
Lustig previously commented on FTSE Russell’s decision to speed up SpaceX’s inclusion in benchmark indexes, anticipating increased passive investment flows. He has also discussed the potentially higher costs of global privilege linked to defense spending. Both topics reflect his ongoing focus on hidden expenses and structural shifts in asset allocation.