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SpaceX is coming to your 401(k) - maybe
CNN • • business
Key Points:
- SpaceX recently went public in a record-breaking IPO, and its shares could soon appear in 401(k) accounts as the company becomes eligible for inclusion in various stock market indexes.
- Nasdaq and FTSE Russell have shortened the waiting period for mega IPOs like SpaceX to be included in their indexes, potentially allowing SpaceX shares to enter some benchmark funds within days or weeks.
- However, SpaceX will not be eligible for inclusion in the S&P 500 for at least a year, as S&P Dow Jones Indices has not changed its rules to fast-track such IPOs.
- Due to less than 5% of SpaceX shares being publicly available, its initial weighting in major indexes and funds will be relatively small, limiting its immediate impact on portfolios.
- Investors seeking exposure to SpaceX can also consider newly proposed ETFs targeting the company, including leveraged options, but experts recommend broad diversification and long-term investing to manage volatility.
