(Bloomberg) — Tesla Inc.’s historic entry into the S&P 500 could be bad news for shareholders of some other stocks in the index — at least temporarily.
Funds that mimic the benchmark are set to buy more than $70 billion of the carmaker’s shares and dump an equal amount of stock in existing members, producing intense selling pressure that could lead to dislocations, warned Greg Sutton, head of portfolio trading at Citadel Securities, one of the most active traders of U.S. stocks.
The…
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