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ETF Rebalancing and Market Impact
The chapter explores the substantial impact of ETF rebalancing, specifically focusing on the State Street Global Advisors tech ETF needing to buy Nvidia shares and sell Apple shares. It discusses the implications of passive investing, indexing, and SEC rules on fund compositions and rebalancing strategies. Additionally, the chapter touches on the potential market impacts of a large cap ETF reshuffling, Chinese EV incentives, and the impact of tariffs on Chinese automakers in the US, EU, and Canada.