AMC drama exposes risks in index world

On the rise: Movie theater operator AMC’s share surge makes it among the most-expensive stocks in the Russell 3000. — AP

NEW YORK: Index funds are supposed to cut out the human-driven craziness that periodically infects markets, but the recent meme-stock fever proved the US$11 trillion (RM45.41 trillion) industry is far from immune.

The remarkable surge in shares of AMC Entertainment Holdings Inc and a handful of other stocks is showing up in multiple exchange-traded funds, skewing portfolios, altering risk profiles and exerting outsized influence on prices.