Index rules bar SpaceX from S&P 500 inclusion for at least a year, redirecting investors to Nasdaq or Russell benchmarks.
The S&P 500 index committee ruled SpaceX ineligible for inclusion in the benchmark for at least 12 months following its $2 trillion valuation IPO, the largest in market history. The decision affects nearly $2 trillion in assets tied to S&P 500 ETFs, including Vanguard’s VOO, which recently surpassed $1 trillion in assets under management.
Traditionally, new stocks must wait 12 months before joining the S&P 500, though exceptions exist for spin-offs or restructurings. Nasdaq and Russell index committees have adjusted their rules to accommodate mega-cap IPOs like SpaceX, OpenAI, and Anthropic, which are expected to debut as some of the largest U.S. public companies.
Investors seeking exposure to SpaceX will need to look beyond S&P 500 funds, with alternatives including the NASDAQ 100 or Russell 1000. SpaceX began trading on the Nasdaq Friday under its ticker.