TechFlow News, May 24: According to a report by Business Insider, SpaceX is poised to launch its IPO, with an estimated valuation of $1.75 trillion to $2 trillion. This exceptionally high valuation implies that SpaceX could be rapidly added to major indices and ETFs following its listing, and the pace of passive fund allocations may far exceed that seen in previous large-scale IPOs. Under current rules:
1. The CRSP Index, which underlies Vanguard’s VTI and growth-oriented ETF VUG, could include SpaceX as early as five trading days after its listing;
2. The Nasdaq-100 Index, tracked by QQQ, could include SpaceX as early as 15 trading days after its listing;
3. The Russell 1000 Index and the Russell 1000 Growth Index are expected to add SpaceX as early as September and December this year, respectively;
4. The S&P 500 Index, tracked by SPY, may include SpaceX in 2027—subject to potential rule changes.
SpaceX’s weight in the Nasdaq-100 Index is projected to reach 0.47%–0.70%, higher than its weighting in most float-adjusted market-cap-weighted indices. As lock-up periods expire and more insider shareholders sell shares, SpaceX’s public float is expected to increase, potentially further boosting its weightings in major indices.
