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Super Micro dropped 60.86% after joining S&P 500, but index funds had to buy at peak prices.

Market News
22 Oct 2026
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Bearish
Super Micro dropped 60.86% after joining S&P 500, but index funds had to buy at peak prices.

Super Micro Computer's stock fell 60.86% from its price on the day it was announced to join the S&P 500 index, yet index funds like Vanguard's S&P 500 ETF (VOO) were required to buy the stock at that peak price due to index rules. This highlights a hidden cost of index investing: funds must purchase stocks immediately after inclusion announcements, often at inflated prices, which impacts returns but is not reflected in fees. Despite this, the effect on large diversified funds is limited, and the low fees and passive management remain attractive for long-term investors.

As of Oct 23, 2026 07:21 WIB, Super Micro Computer (SMCI) trades at USD 33.62, down 5.43% for the day and well below its 52-week high of USD 52.69 but above its 52-week low of USD 20.53. In contrast, the Vanguard S&P 500 ETF (VOO) is priced at USD 701.91, down 1.24% and closer to its 52-week high of USD 716.17 than its low of USD 580.93. The sharp decline in SMCI's price since its S&P 500 inclusion contrasts with VOO's steadier performance, highlighting different market dynamics for individual stocks versus broad index funds on Pluang.

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