Here's when SpaceX could show up in major indexes and popular ETFs after its IPO
Here's when SpaceX could show up in major indexes and popular ETFs after its IPO
Naomi Buchanan Sun, May 24, 2026 at 4:03 PM UTC
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SpaceX is going public in what's expected to be the largest IPO ever.
Index investors may gain exposure, but the timing and weight depend on each index's rules.
Ahead of the historic IPO, many indexes have changed or are considering changing inclusion rules.
SpaceX is going public in what's set to be the largest IPO ever, with a valuation of up to $2 trillion and up to $75 billion raised in the offering.
That valuation would catapult SpaceX to a spot among the world's most valuable companies. For investors who want to own the stock—and even for those who do not—the offering is an important event to watch.
"The biggest IPO in history is about to land in passive portfolios faster than anything comparable has before," Jacob Friedman, an investment manager at Focused Wealth Management, said.
SpaceX's mega valuation and its "float problem"
The key factor in understanding SpaceX's impact on major indexes is the IPO's sheer scale. The company is reportedly targeting a $50 billion to $75 billion capital raise in its public debut which would bring SpaceX's valuation to 1.75 trillion to $2 trillion.
The second critical component is float or the number of shares available for public trading.
Several indexes use a float adjusted market weight rather than considering all outstanding shares which would include insider and early investors that are subject to lock-up restrictions.
"Companies with a larger public float are generally more stable and liquid, as their shares are widely available for buying and selling," Peak Frameworks explained, adding, "In contrast, companies with a smaller float may experience greater price volatility."
Friedman said that SpaceX has a float problem. "SpaceX's low float is the biggest variable for index investors." Considering the details recently reported, the company would have a public float of 2.86% if it raises $50 billion at a $1.75 trillion valuation and 3.75% to raise $75 billion at a $2 trillion valuation. The float could increase as insiders and early investors sell shares in the market, but there will likely still be a relatively small amount of stock available to trade.
In comparison, most US large cap companies float 80% or more of their shares. Within Big Tech, Microsoft floats approximately 99.97% of total shares, while Nvidia floats roughly 95.8%.
Some indexes use float market weighting to better reflect the tradable market by not considering locked-up shares.
"Float, methodology, and timing differences between the major indices mean two investors holding what they think are similar funds will end up with very different SpaceX exposure," the investing pro noted.
Whether you're clamoring for exposure or want to steer clear, here's when SpaceX stock could show up in major indexes and some of the popular ETFs that track them.
CRSP Total Market (VTI) and CRSP Growth (VUG)
The CRSP Total Market index tracks nearly 100% of the investible US equity market across market capitalizations and exchanges.
The CRSP Large Cap Growth index tracks the performance of US growth stocks across exchanges, covers the top 85% of cumulative capitalization of the total market index.
The two indexes are measured by the Vanguard Total Stock Market ETF, trading under the ticker VTI, and the Vanguard Growth ETF, trading under the ticker VUG.
Recent rule changes: CRSP changed its methodology in late April to make its previous public float minimum more nuanced, considering alternative liquidity screening measures. This change made SpaceX eligible.
When: The CRSP indexes are expected to be the first to include SpaceX after its IPO due to its fast-track rule which allows eligible IPOs to be added after five days of trading. SpaceX could be included in the total market index within a week of going public.
Weight: SpaceX is projected to have 0.07% to 0.11% weight on the CRSP Total Market index and 0.17% to 0.26% weight in the CRSP Large Cap Growth index. The stock's weight on the overall index is limited by its low float since the index weight is float-adjusted.
Nasdaq 100 (QQQ)
The Nasdaq 100 tracks 100 of the largest Nasdaq-listed non-financial companies.
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The index serves as a benchmark for ETFs like the Invesco QQQ Trust, trading under the ticker QQQ.
Recent rule changes: The Nasdaq 100 finalized rules changes to create a new "fast entry" to index inclusion for mega IPOs that took effect May 1. Reports citing sources familiar with the matter said that SpaceX has been reaching to index providers to allow quicker entry into major stock indexes.
When: The fast entry rule allows newly public companies can join the Nasdaq 100 in 15 trading day, compared to waiting as much as a year to be considered to index inclusion before the rule change.
Weight: SpaceX is expected to have a 0.47% - 0.70% weighting on the Nasdaq 100. The Nasdaq 100 isn't float adjusted.
Russell 1000 (IWB) and Russell 1000 Growth (IWF)
The Russell 1000 tracks the largest 1,000 stocks in the Russell 3000 Index, while the Russell 1000 Growth provides targeted exposure to growth stocks.
The IWB and IWF ETFs follow each index, respectively.
Potential rule changes: The Russell 1000 recently conducted consultations for proposed rule changes to its IPO inclusion framework, focused on faster index inclusion and limited initial free float worries.
When: SpaceX is expected to join the Russell 1000 in September, but it could be earlier depending on how the potential rule-change consultation plays out. SPCX projected to be added to the Russell 1000 Growth index in the December review.
Weight: SpaceX is expected to have a 0.08% to 0.12% weight in the Russell 1000 as current rules stand and a 0.16% to 0.24% weight in the Russell 1000 Growth index.
S&P 500 (SPY)
The S&P 500 follows the top 500 companies trading in the US, while the S&P 500 Growth index follows the growth companies within the larger index.
ETFs like SPY, VOO, and IVV track the S&P 500. SPYG, VOOG, and IVW are some of the most popular ETFs tracking the broad index.
Potential rule changes: The S&P 500's index inclusion rules are under formal review as of April 30 considering whether mega IPOs like SpaceX warrant a rule changes.
Current rules require one year of public trading along with four straight quarters of positive GAAP earnings, and a minimum market cap of $22.7 billion. The proposed changes would cut the required trading period in half and waive the four quarters of positive earnings (a major hurdle for SpaceX's inclusion).
The review runs until May 28 and a new rule proposal is set to take effect June 8, ahead of SpaceX's expected IPO.
When: If the new rule is enacted, SpaceX would join the index in March 2027 or mid 2027 if the rule doesn't change the timeline.
Weight: The SpaceX weighting could sit at a 0.08% to 0.12% if the rule is enacted and it enters the index six months after going public.
Peak Frameworks reports noted, "One caveat is that the calculation uses at-IPO inputs, but actual S&P 500 inclusion happens at least six months after the IPO under the proposed rule, and longer under the existing rule."
When this happens, some lock-up agreements may have expired, improving SpaceX's float and impacting its weighting since the S&P 500 is float adjusted.
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Source: “AOL Money”
