Updated
Updated · Bloomberg · Jun 3
Analyst Urges Vanguard, BlackRock to Launch S&P 500 Funds Excluding 3 AI Firms
Updated
Updated · Bloomberg · Jun 3

Analyst Urges Vanguard, BlackRock to Launch S&P 500 Funds Excluding 3 AI Firms

3 articles · Updated · Bloomberg · Jun 3

Summary

  • Three private AI leaders — SpaceX, OpenAI and Anthropic — should be carved out of new index products, an analyst argued, proposing “Total Market” or S&P 500-style funds that exclude them.
  • The pitch frames the current setup as a market failure: investors who want broad passive exposure without backing those companies have no efficient off-the-shelf option and instead rely on ad hoc pressure campaigns.
  • S&P itself could also create versions built under older index-admission rules, the analyst said, including profitability requirements and a 12-month waiting period before entry.
  • The idea borrows from ESG investing, where fund groups sold standard and exclusion-based index variants; here, the screen would be simpler — no SpaceX, no Anthropic, no OpenAI.

Insights

As S&P 500 rules change, will your retirement fund be forced to buy into an AI bubble?
With AI giants nearing massive IPOs, should investors now demand an explicit option to opt out?