It'll Be Awhile Before SpaceX Joins S&P 500 ETFs
Written by Todd Shriber for The Motley Fool -> SpaceX won’t be fast-tracked into the S&P 500. The index provider’s decision isn’t specific to SpaceX and could affect other massive upcoming IPOs such as Anthropic and OpenAI. Investors have plenty of alternatives when it comes t
The index provider’s decision isn’t specific to SpaceX and could affect other massive upcoming IPOs such as Anthropic and OpenAI.
Investors have plenty of alternatives when it comes to broad-market ETFs that will include SpaceX.
Friday, June 12, is shaping up to be a memorable day in financial market history, as SpaceX stock will finally become available to the broader investing public.
Elon Musk's company is poised to shatter initial public offering (IPO) records, with reports indicating SpaceX will sell 555.6 million shares publicly to raise $75 billion at a valuation of $1.77 trillion. Yet for all the noteworthy footnotes attached to this IPO, SpaceX is going to miss out on a big one: faster-than-usual inclusion in the S&P 500 (SNPINDEX: ^GSPC) .
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SpaceX won't be gaining fast entry into S&P 500 ETFs. Image source: Getty Images.
Though not specific to SpaceX, S&P Dow Jones Indices stunned some indexing nerds and market observers on June 4 when it announced it wouldn't alter the eligibility criteria for the S&P 500, S&P MidCap 400 , and S&P SmallCap 600 .
Due to SpaceX hype, there's plenty of enthusiasm for space stocks these days, but some investors would rather nibble at this asset class rather than feast on it through individual stocks or space-industry-focused exchange-traded funds (ETFs).
