SpaceX has been approved for inclusion in the Nasdaq-100 index, marking one of the fastest additions to this benchmark following its public debut on June 12. Nasdaq's announcement confirmed that if SpaceX meets the necessary criteria, index-tracking funds will begin purchasing shares after the market closes on July 6, with the official inclusion taking place before trading starts on July 7.
The Nasdaq-100 index, which is tracked by over $800 billion in assets, includes popular funds like the Invesco QQQ Trust (QQQ), a key indicator of the technology sector and the artificial intelligence market. SpaceX is expected to enter the index with a weighting of less than 1%.
This swift inclusion is a result of Nasdaq's new fast-track process for large IPOs, allowing them to qualify for the index after just 15 trading days, a significant reduction from the previous waiting period. This change is particularly beneficial for investors looking to gain exposure to newly public companies like SpaceX.
The inclusion is likely to create additional demand for SpaceX shares, as index funds and ETFs will need to adjust their holdings to reflect the new index composition. However, SpaceX's relatively small publicly tradable float compared to its total market capitalization means that even a small index weighting could necessitate substantial purchases from passive investment vehicles.
Notably, SpaceX remains ineligible for the S&P 500 due to the lack of a similar fast-track process and the index's stricter profitability and seasoning requirements