All. They won't. Institutions (read public and private pension funds) will acquire over time in their dinosaur like pace. Unlike the Fidelitys, they don't have any *competition*. They can and do take their time. That's the downside. The upside is that they provide steady buying support forever and ever amen.
Additionally, because Q is growing at 40%-50%, while the S&P500 is growing at less than half that pace, Q's market cap will be growing at twice the rate of the S&P500 as a whole. Thus, since the S&P500 is a market cap weighted index, institutional buying of Q will be at an ever increasing rate, just to stay in synch with the Index. Mind you, not all S&P500 Index funds hold all the companies in the index. Lots of funds use optimizers (like BARRA's) which allow them to hold many fewer stocks yet track the index fairly well. However, because Q is somewhat unique, I think that it will probably be screened in by the optimizers rather than screened out. (JMHO)
But here's an added bonus. I don't believe that Q is yet part of any of the major Russell Indexes, another favorite of institutional funds, and frequently used as an alternative to the S&P500 Index. This being the case, expect even more buying pressure on this baby, as Russell adds Q to its Indexes.
Morgan |
