Space Exploration Technologies Corp. Class A Common StockSpaceX's Nasdaq 100 weight will more than double to 2.82%, forcing index-tracking funds to buy billions of dollars of its stock.

SpaceX's weighting in the Nasdaq 100 Index will more than double to 2.82% when the benchmark's quarterly rebalance takes effect on Monday, Bloomberg reported, citing data from the index provider. The adjustment, calculated using Friday's closing prices, confirms a provisional weighting that will begin to align the space and satellite giant's influence in the index with its massive market valuation. SpaceX, which made its public debut in July, currently holds a relatively small 1.28% weighting in the gauge, as most of its shares were locked up following its listing, constraining its index representation even after Nasdaq revised its rules to allow newly listed mega-cap companies to enter the index sooner without requiring a 10% free-float minimum. The rebalance helps close an unusual disparity: while SpaceX ranks as the seventh-largest company in the Nasdaq 100 with a market capitalization exceeding $2 trillion, its current weighting does not even place it among the top 20 constituents by percentage weight. The sharp increase in index weight will force passive funds and exchange-traded funds tracking the benchmark to adjust their portfolios and purchase billions of dollars in SpaceX stock, including the $482 billion Invesco QQQ Trust Series 1, one of the largest ETFs in the world tracking the Nasdaq 100, while over 200 investment products track the index, managing more than $800 billion in total assets globally.
Space Exploration Technologies Corp. Class A Common StockSpaceX's Nasdaq 100 weight will more than double to 2.82%, forcing index-tracking funds to buy billions of dollars of its stock.
Invesco Plc
Nasdaq Inc