How is that an issue? Many funds that replicate an index are not doing full replication anyway. They do some kind of sampling that includes way fewer stocks than defined in the index.
What would stop a fund from just not including those stocks because of sampling?
Or waiting for time to settle, since even with full physical replication, they are not required to jump in and buy immediately after IPO.
What would stop a fund from just not including those stocks because of sampling?
Or waiting for time to settle, since even with full physical replication, they are not required to jump in and buy immediately after IPO.