Rob Arnott Says He Told You Tesla Would Be a Drag on the S&P 500
- Index additions tend to lag deletions six months after switch
- Tesla was ‘the mother of all S&P 500 rebalances,’ says Arnott
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Tesla Inc. has been a disappointment to many since going into the S&P 500 Index. But not to Rob Arnott.
Whipped around by shifting tastes for cutting-edge tech, shares of the electric-vehicle maker have trailed the index by roughly 12 percentage points since their mid-December addition. That’s pretty much what the smart-beta pioneer said would happen to the gauge’s biggest-ever entrant.