SpaceX’s $75 billion IPO on June 12 excludes it from the S&P 500 for at least 12 months, impacting Vanguard’s VOO and VTI ETFs differently.
SpaceX’s upcoming $75 billion IPO on June 12 will not immediately include the company in the S&P 500, following a June 4 rejection by S&P Dow Jones Indices. The decision delays SpaceX’s entry for at least 12 months, affecting major ETFs tracking the index.
The Vanguard S&P 500 ETF (VOO) mirrors the S&P 500, while the Vanguard Total Stock Market ETF (VTI) tracks the broader CRSP U.S. Total Market Index, holding 3,494 stocks. Both ETFs share a 0.03% expense ratio but differ in exposure, with VTI potentially including SpaceX sooner due to its broader benchmark.
Despite the delay, both ETFs will eventually hold SpaceX, though VTI may accumulate a larger position over time. The S&P 500’s exclusion rule applies to megacap IPOs like SpaceX, Anthropic, and OpenAI, limiting immediate index inclusion.