GameStop Is Creating Problems in Sleepy World of Index Following
- Stock’s weighting swells in passive ETFs amid 400%-plus surge
- GameStop will dominate until it falls or the funds rebalance
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The Reddit-spurred market madness is spreading to even the most placid corners of the passive world.
A more than 400% rally in GameStop Corp. this week is ramping up the company’s weighting in retail indexes. That’s unbalancing usually predictable exchange-traded funds from the likes of State Street Corp. and Invesco Ltd., and prompting a warning from analysts at Citigroup Inc.