Rob Arnott Sees Mega-Cap IPOs Weighing on Other Stocks for Years

Massive initial public offerings from SpaceX, Anthropic PBC and OpenAI risk creating a years-long drag for the broader equity market by diverting tens of billions of dollars away from existing shares, according to Research Affiliates founder Rob Arnott.

Such diversion may take a while, after S&P Dow Jones Indices opted not to give fast-track entry to the big new stocks. But for Arnott, a pioneer of smart-beta investing whose firm’s strategies are used by the likes of Pimco and Invesco, the effects were always going to take more time to ripple across the rest of the market as their ...