Index Funds Poised to Increase Holdings in SpaceX Despite Recent Stock Decline
Broad-market index funds are expected to increase their holdings of SpaceX stock following upcoming rebalancing events, despite a significant decline in the company's share price. According to Morningstar, as insider lockup restrictions lifted on August 6, over 911 million shares became eligible for sale—expanding the float-adjusted market capitalization and potentially increasing index weights. The Nasdaq-100 is scheduled to rebalance in September 2026, with projections showing SpaceX's weight could rise from about 1% to above 3.5%. Similarly, FTSE Russell will reconstitute its indexes on December 11, which may further boost the company’s presence. SpaceX entered major U.S. stock indices shortly after its June IPO and has since become a significant holding for passive funds tracking those benchmarks. Morningstar noted that if all newly eligible shares enter public trading, SpaceX's float-adjusted market cap could nearly triple without any change in price per share. This would elevate the company into the Russell 1000’s top 100 holdings at around 0.2%, despite a recent stock decline of over 30% and ongoing net losses.
Topics: float adjustment index funds rebalancing stock market