Want to Avoid SpaceX, Anthropic, and OpenAI? Buy This Low-Cost Vanguard ETF.
Written by Daniel Foelber for The Motley Fool -> Many top index funds and exchange-traded funds will passively buy SpaceX once it is added to the major stock market indexes. The Vanguard Value ETF has historically delivered solid returns without relying on high-flying growth st
Many top index funds and exchange-traded funds will passively buy SpaceX once it is added to the major stock market indexes.
The Vanguard Value ETF has historically delivered solid returns without relying on high-flying growth stocks.
The highly anticipated SpaceX initial public offering (IPO) is right around the corner. The company plans to raise $75 billion at a nearly $1.77 trillion valuation , making it the largest IPO in history. What's more, Anthropic is now expected to IPO ahead of OpenAI , with both artificial intelligence (AI) giants expected to go public later this year.
But some investors may be concerned that these high-profile companies are overvalued . Or at least, would prefer to evaluate them on public markets rather than dive in headfirst right away.
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New rules by the Nasdaq-100 (which tracks the 100 largest non-financial companies on the Nasdaq exchange) will expedite the inclusion of megacap companies into the indexes . That means some index funds and passively managed exchange-traded funds (ETFs) could soon be buying SpaceX , Anthropic, and OpenAI in droves.
Here's why the Vanguard Value ETF (NYSEMKT: VTV) is a great way to invest in industry-leading companies while avoiding SpaceX, Anthropic, and OpenAI.
With 309 holdings, the Vanguard Value ETF essentially filters the S&P 500 by excluding growth-focused companies. It doesn't hold high-profile growth stocks like Nvidia , Alphabet , Apple , Microsoft , Amazon , Broadcom , Tesla , Meta Platforms , or Eli Lilly . You can find those names in the Vanguard Growth ETF (NYSEMKT: VUG) .
