Day 2 :next day market crashes. Acme is very low volume so price crashes to 1$ .
what happens next ? do all the EFT that follow S&P have to sell all ACME for 1$ because it is
not in the S&P 500 anymore.
Day 5 : ACME jump back to 200 $ and is back in the S&P 500.
So my question is what would have happen to a passive investor. if he bought 1000$ worth of ETF right before the crash. Will he still have a 1000$ dollars at the end of it .
Day 1: (before crash) price : 200$ S&P 500 weight : 2%
Day 2 :next day market crashes. Acme is very low volume so price crashes to 1$ .
what happens next ? do all the EFT that follow S&P have to sell all ACME for 1$ because it is not in the S&P 500 anymore.
Day 5 : ACME jump back to 200 $ and is back in the S&P 500.
So my question is what would have happen to a passive investor. if he bought 1000$ worth of ETF right before the crash. Will he still have a 1000$ dollars at the end of it .