Suppose I have invested in ETF VOO. This Vanguard ETF tracks the S&P 500.
If a stock such as Goodyear (GT) that is contained in the S&P500 gets removed and replaced with another stock such as Bitcoin (BTC) - does VOO incur a net loss? If so, who foots the bill?
Are the incoming and outgoing stocks usually around the same price? Is the incoming one usually a tiny bit higher (since the outgoing one is probably trending downwards), resulting in the net loss?
And is this net loss part of the expense ratio? I would have thought the tiny expense ratio wouldn't cover what could be a significant net loss.