On June 5, Rob Arnott, founder of Research Affiliates, stated that mega IPOs from companies like SpaceX, Anthropic PBC, and OpenAI could divert hundreds of billions of dollars from existing stocks, potentially causing a prolonged drag on the broader stock market. This diversion effect may take time to manifest after S&P Dow Jones Indices decided not to quickly incorporate these large new stocks into the index. However, Arnott believes that as these companies gradually increase their weight in the index, their impact will naturally take longer to transmit to other parts of the market. Arnott, a pioneer in smart beta investing, has strategies adopted by institutions such as Pimco and Invesco. He remarked, 'This will disrupt capital markets, and it already is disrupting capital markets.' He is known for his research related to fundamental indexing, which determines index component weights based on metrics like earnings and cash flow.