You may now own a piece of Trump Media – and not even know it

If you’ve invested in the market, you may indirectly own shares of Trump Media without realizing it. Trump Media & Technology has been included in the Russell 1000 Index and the Russell 3000 Index, making it part of popular passive funds like index and exchange-traded funds (ETFs). This means that retail investors who own these funds now have a stake in Trump Media. Passive investing has grown in popularity as a way to diversify holdings, but it can result in investors unknowingly owning shares in companies based on index rules rather than a thorough evaluation of their fundamentals. The inclusion of Trump Media in the Russell indexes highlights this potential disadvantage of passive investing. Despite its inclusion, Trump Media is a small part of these funds compared to larger companies like Microsoft and Apple. However, concerns have been raised about Trump Media’s valuation and its flagship product, Truth Social, which is still a minor player in the social media landscape.