# S&P 500 Excludes SpaceX From Index Following Record IPO

**Published:** 2026-06-12T11:40:49.524Z  
**Topic:** S&P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/c6051fcb-a978-44e0-a1ab-58d51455eac2

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**
* SpaceX completed the largest IPO in market history, raising approximately $75 billion by selling 556 million shares [2].
* The S&P 500 index committee maintained its standard 12-month waiting period for new stocks, citing a "profitability test" that the company has yet to meet [1].
* Unlike the S&P 500, other market benchmarks like the Nasdaq and Russell have indicated they will update their rules to accommodate new mega-cap offerings [1].
* Retail investors showed significant interest in the stock, purchasing over $18 million worth of shares in the first 20 minutes of trading [2].

## Indexing Rules and Market Divergence
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].

## Why it matters
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].

## Sources
1. CNBC — [The S&P 500 already made a big call on SpaceX stock and index fund investors...](https://www.cnbc.com/2026/06/12/spacex-ipo-sp-500-index-funds-investors.html)
2. Investopedia — [SpaceX IPO Today: Live Coverage as Stock Rises After Opening at $150](https://www.investopedia.com/spacex-ipo-today-live-coverage-spcx-stock-elon-musk-11996087)

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Cite as: TrendWatcher, "S&P 500 Excludes SpaceX From Index Following Record IPO", https://www.trendwatcher.in/article/c6051fcb-a978-44e0-a1ab-58d51455eac2