It makes sense. They intend to track the market as it is.
Though, you can definitely make the case that the popularization of index funds has allowed their holders to essentially become patsies to hype IPOs.
Dumb question: why couldn't retirement accounts simply not purchase these?
Or one that just imposes a reasonable waiting period on adding newly-IPO’d listings.
https://finance.yahoo.com/markets/stocks/articles/spacex-ipo...
VTI in turn is the primary holding of most of Vanguard's Target Date retirement funds, which are widely held in 401ks.
And there are plenty of ways to manipulate the price, such as issuing a low float to a hyper hyped stock..
Meanwhile some of these companies are also lobbying to be able to only have to submit annual or biannual earnings reports, too.
Everyone is looking for multiple ways to leave the dumb money holding the bag.
Edit: oh looky did I inflame the PE simians?
There's no way they could have done that without telling those investors the S-1 was prepared and awaiting their signature on the round before they hit Submit, so to speak.