If You Have a 401(k), How Much SpaceX Stock Will You Own?
The New York Times • • business
Key Points:
- SpaceX recently completed its initial public offering (IPO), marking the world's largest stock market debut and enabling many Americans to own a portion of the company through index funds.
- Despite the IPO, SpaceX will constitute a relatively small portion of most index funds due to a limited amount of publicly tradable shares compared to other tech giants like Nvidia and Apple.
- Investors in total U.S. stock market index funds are estimated to own over ten times more Tesla stock than SpaceX, reflecting Tesla's larger public market presence.
- The estimated share of SpaceX in a typical U.S. stock index fund is about 0.1%, equating to roughly $57 for every $40,000 invested, assuming an opening share price of $150.
- Major tech companies such as Nvidia, Apple, Microsoft, and Amazon continue to dominate index fund holdings, with SpaceX's tradable shares representing only a fraction of its total corporate value.