[chii]

The rule change where nasdaq adds a weighting factor to spacex's float is what causes distortions - it artificially increases the size of spacex's cap weight without actually having more shares.

Fortunately, this only affects indices that follow nasdaq, and from what i know, no other index is following this. That means it's "safe" to purchase a globally diversified, cap weighted index fund (safe as in the float isn't manipulated).

People talk of the demise of passive investing due to this, but most of the commentary fail to mention it's a specific, nasdaq thing and not a general change.