SpaceX won't get early access to the S&P 500
Key takeaways
- Your pension plan may not be forced to buy Space X stock after all.
- Space X With Space X about to go public shortly at a gobsmacking valuation, the Nasdaq 100 and other indexes recently relaxed their rules to allow Elon Musk's company to join early.
- However, the largest index in the world, the S&P 500, just announced that it won't relax its rules for so-called MegaCap companies to let them in early.
Your pension plan may not be forced to buy Space X stock after all. (
Space X With Space X about to go public shortly at a gobsmacking valuation, the Nasdaq 100 and other indexes recently relaxed their rules to allow Elon Musk's company to join early. That caused some consternation because huge funds often invest in ETFs (exchange traded funds) based on those indexes. That in turn means that people could end up with Space X stock in their pension funds, for instance, whether they want it or not.
However, the largest index in the world, the S&P 500, just announced that it won't relax its rules for so-called MegaCap companies to let them in early. As a result, SpaceX will have to wait at least 12 months before being considered for addition to the index. What's more, firms must be profitable over a period of their four most recent quarters for inclusion. That could be a challenge for SpaceX as it has never actually turned a profit, according to its own S-1 SEC filing.