The Lemon Fool

ETFs and trackers are getting more popular.

The market cap of VUKE is £3854.05M.

The Market cap of WEIR (the smallest FTSE100 member) is £4,265.43M.

I was idly pondering, what happens if VUKE becomes large enough to enter the FTSE100? If it buys itself, it becomes bigger, meaning it needs to buy more of itself, etc etc.

Paul

DrFfybes wrote:ETFs and trackers are getting more popular.

The market cap of VUKE is £3854.05M.

The Market cap of WEIR (the smallest FTSE100 member) is £4,265.43M.

I was idly pondering, what happens if VUKE becomes large enough to enter the FTSE100? If it buys itself, it becomes bigger, meaning it needs to buy more of itself, etc etc.

Paul

It isn't a limited company so cannot be a FTSE 100 constituent AFAIAA

scrumpyjack wrote:

DrFfybes wrote:ETFs and trackers are getting more popular.

The market cap of VUKE is £3854.05M.

The Market cap of WEIR (the smallest FTSE100 member) is £4,265.43M.

I was idly pondering, what happens if VUKE becomes large enough to enter the FTSE100? If it buys itself, it becomes bigger, meaning it needs to buy more of itself, etc etc.

It isn't a limited company so cannot be a FTSE 100 constituent AFAIAA

Yes, the only funds that can be in any index are investment trusts.

Same in the US where the largest ETF is something like $400 billion and the largest open-ended fund is about $250 billion. VUKE at $5 billion is a tiddler!

It will be interesting to see what happens to the FTSE100 when BHP, one of the largest constituents, leaves next year. At present it is a split UK/Aus company but will become 100% Aus and not eligible for the FTSE100.
VUKE and ISF etc will presumably have to sell their holdings.

The Vanguard FTSE 250 fund is currently £3,500m in size. The FTSE 250 is between £6,785m (Morrisons, having gone up a lot recently) and £628m, but it doesn't contain any Vanguard ETFs (it does contain active investment trusts).

VUKE is a sub fund of an Irish company so not really FTSE material.