SpaceX Enters Value ETFs Despite High Valuation
Since its initial public offering in June 2026, SpaceX has been rapidly incorporated into a wide range of exchange-traded funds (ETFs), including value index funds. According to Morningstar data, the company is now included in 179 ETFs. Analyst Zachary Evens notes that as more shares become available over time, its weight within these indexes could grow significantly. One surprising development is SpaceX's inclusion in several value-oriented ETFs despite its high market valuation and negative price-to-earnings ratio. This occurs because some funds use strict rules—such as a negative P/E—to classify stocks as 'value.' For example, the Schwab US Large-Cap Value ETF (SCHV) includes 0.27% of SpaceX in its portfolio. While current allocations are small and unlikely to impact performance significantly, this highlights how index rules can lead to unexpected outcomes for investors. Evens emphasizes that understanding these underlying criteria is crucial as the company's presence in benchmarks evolves.
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Topics: ETFs index funds passive investing SpaceX