Are Index Funds Making the Market “Irrational”?

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 6 July 2026

⏱️ 27 minutes

🔗️ Recording | iTunes | RSS

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Summary

Matt, Rachel, and Jon talk about SK Hynix’s upcoming U.S. IPO, explaining what high-bandwidth memory is and which companies could potentially benefit from the company’s IPO proceeds. The Motley Fool Hidden Gems Investing team then tackles two questions from the mailbag. The first relates to SpaceX and ETFs. The second talks about how ETFs and index funds have potentially changed the structure of the stock market. Jon Quast, Matt Frankel, and Rachel Warren discuss: -High bandwidth memory for AI -SK Hynix’s U.S. IPO -What happens with ETFs when companies go public? -How ETFs and Index Funds influence markets -Rational vs irrational stock prices Companies discussed: SK Hynix (SKHY), Micron (MU), Samsung, Nvidia (NVDA), ASML (ASML), Lam Research (LRCX), Applied Materials (AMAT), Space Exploration Technologies (SPCX), ERShares Private-Public Crossover ETF (XOVR), Fundrise Innovation Fund (VCX) Host: Jon Quast Guests: Matt Frankel, Rachel Warren Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Are index funds making the market irrational?
0:04.7	You're listening to Motley Fool Hidden Gems Investing.
0:09.7	Welcome to Motley Fool Hidden Gems Investing.
0:12.3	I'm John Quast and I'm joined today by Foolish contributors Matt Frankel and Rachel Warren.
0:17.3	Before you dive into today's episode, do yourself a favor.
0:22.5	Head over to news.fool. com and sign up for breakfast news it's a free daily email from the motley fool landing in
0:28.8	your inbox by 730 a.m every morning packed with the stories long-term investors actually want to know
0:36.0	about so we're going to tackle some topics today on today's show.
0:40.6	We have actually two topics about ETFs from our mailbag.
0:44.1	Something like that you wouldn't necessarily find in Breakfast News,
0:46.8	but you might find something in Breakfast News similar to the story we're leading with here,
0:50.9	and that is the topic that we have regarding S.K. Heenix.
0:55.5	Now, S.K. Hynix is a computer memory company based in South Korea, and it's already
1:01.5	publicly traded there in South Korea, but as early as this week, it does plan to list some
1:07.5	American depository shares here in the U.S. or ADR. It's going to trade under the
1:13.0	ticker symbol S-K-H-Y, and it's targeting to sell nearly 178 million ADR shares. That will
1:20.8	hopefully raise roughly $28 billion. It needs some money to build new factories and furnish them with chip making
1:28.8	equipment. Now, one could say with AI, GPUs aren't holding anything back. It's the computer
1:33.8	memory, finding that specifically that high bandwidth memory. That is what these companies need
1:40.0	right now. That is what we are not making enough of. And my first question here to you, Rachel,
1:46.3	is what exactly is high bandwidth memory and who makes it?
1:50.8	So high band with memory or HBM,
	...

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