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The S&P 500 committee has decided not to include SpaceX in its index for at least one year, leaving investors to seek exposure through other benchmarks.
The S&P 500 index committee has declined to add SpaceX to its benchmark following the company’s record-breaking initial public offering on Friday [1]. While SpaceX shares began trading on the Nasdaq with a valuation exceeding $2 trillion, investors holding standard S&P 500 funds will not gain exposure to the company for at least one year [1].
Key takeaways
The decision to keep SpaceX out of the S&P 500 for the first year of its public trading history highlights a growing divide between index providers. While global benchmarks like FTSE and MSCI have previously utilized fast-track models to add massive IPOs within days, the S&P committee has chosen to uphold its traditional waiting period [1]. Strategas Securities strategist Todd Sohn noted that this stance sets a precedent that could exclude other upcoming mega-cap offerings, such as OpenAI and Anthropic, from the S&P 500 upon their market debuts [1].
This divergence in policy may lead to performance disparities between the S&P 500 and other major indexes like the Nasdaq 100 or Russell 1000 [1]. Some market experts, including Peter Haynes of TD Securities, expressed disagreement with the committee's decision, arguing that a company of SpaceX's size belongs in major benchmarks [1]. Furthermore, the S&P 500's "profitability test" could delay SpaceX's inclusion well beyond the initial 12-month window, as the company reported a net loss of $4.28 billion in its latest quarter [1].
For the millions of Americans invested in passive S&P 500 funds, the exclusion means they will not gain exposure to SpaceX through their core holdings for the foreseeable future [1]. While thematic space and innovation ETFs have provided some investors with pre-IPO access, these funds represent a different strategy than broad market index investing [1].
As the market adjusts, ETF managers are expected to develop creative solutions, such as new index products that specifically include mega-cap companies like SpaceX, OpenAI, and Anthropic [1]. Meanwhile, risk-oriented traders have access to new leveraged ETFs, such as the ProShares Ultra SpaceX ETF and GraniteShares' long and short offerings, though analysts warn these are intended for short-term trading rather than long-term diversification [1].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 12, 2026 · How we report
The S&P 500 index committee maintains a 12-month waiting period for new IPOs and a profitability requirement that SpaceX did not meet at the time of its public offering.
Both funds track the same S&P 500 index, but SPLG has a lower expense ratio and a lower share price, while VOO has higher trading volume and larger total assets.
Investors may look to other market benchmarks like the Nasdaq 100, thematic space or tech innovation ETFs, or specific leveraged trading vehicles.