SpaceX Could Join Vanguard Total Stock Market ETF Within Days After IPO

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SpaceX, which went public on June 12 with a market cap of around $2.5 trillion, could be added to the Vanguard Total Stock Market ETF within as little as five trading days under the CRSP US Total Stock Market Index's fast-inclusion policy. The stock closed its first day up roughly 20% from its IPO price, and its size places it between Broadcom and Amazon, suggesting a potential weighting of around 3% in the ETF once fully reflected. Vanguard indicated that initial portfolio weights are expected to be 1% or less to limit turnover and tax impact. Other major index providers, including FTSE, Russell, MSCI, and Nasdaq-100, also allow relatively quick inclusion, while S&P Global maintains a 12-month waiting period that will delay SpaceX's entry into the S&P 500. The article advises that investors should buy the Vanguard Total Stock Market ETF for its broad, low-cost market coverage rather than for SpaceX exposure.

Space Exploration Technologies Corp. Class A Common Stock ▲