SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P

stubish

This seems a sensible thing to do. If you change the rules on how things end up on your index, you force everyone using that index to reevaluate it. Your index is now perceived as more volatile (and probably is), and all the finance people need to reevaluate the risk of their index funds and decide if it is now 'growth', 'high growth' or whatever bucket it belongs in based on the new risk profile. And then all the portfolios need to be rebalanced. Which all takes time, more time than was being proposed. The sensible thing to do is to create a new index with the new rules.

throw0101a

See also S&P press release, "S&P Dow Jones Indices Consultation on Treatment of MegaCap Companies - Results": * https://press.spglobal.com/2026-06-04-S-P-Dow-Jones-Indices-...

throw0101a

* https://archive.is/https://www.bloomberg.com/news/articles/2... * https://archive.is/15pOn

jethronethro

Good. I'm surprised, though, that the usual fanboys/stans aren't converging on this to protest how unfair the S&P is.

2OEH8eoCRo0

Huge relief. Thank God!

bicepjai

Glad there are some grown ups in US leadership

ak217

So relieved to see this!

d--b

Note that Nasdaq and Russel did put in place fast entry rules. S&P is the only one that didn’t. https://www.nasdaq.com/articles/new-fast-tracks-account-olde...

arowatbk

https://podcasts.apple.com/ca/podcast/the-rational-reminder-... Long listen but a very thorough and nuanced discussion by a bunch of smart investment / finance guys in Canada. No click-bait-sky-is-falling content.

ProAm

Thank fucking g-d.

impure

Good thing they're not dropping the profitability requirements. Ed Zitron would be proud.

louiereederson

The market is more unpredictable than it’s been in a long, long time so I hesitate to make a firm prediction but to me the odds that SpaceX will be a successful IPO over a 3-6 month window are significantly lower now. S&P inclusion basically requires funds to hold a position by default, and per their own estimates $20tn of assets are indexed/benchmarked to the S&P.

alberth

This feels like massive news that general public won’t ever hear.

tehlike

For all the people worried about spacex inclusion in nasdaq/qqq/etc It won't matter for your portfolio. Your portfolio will keep growing.

rchaud

Good. Indexes are supposed to be slow-moving, precisely due to their entry requirement of sustained profitability that skews towards mature companies. All that an inclusion of these new companies would accomplish is a bailout of their stockholders by pension funds and ETFs where millions of regular people shoulder all the downside risk. SpaceX and OAI stock will be available through Robinhood, Questrade and all the other retail investor markets. Individuals can make an informed choice to trade it there, rather than have it automatically added to their index fund without having any say.

siren2026

Those mega IPOs are the latest grift to unload overpriced shares before the whole AI tulip bubble explodes in everyone's face. The insiders know it, which is precisely why those IPOs are happening right now. Employees and VCs don't want to be holding the bag. small-time investors will be. Also, SpaceX is going to unlock more and more on their float at around the same time most indexes will have to buy it. It has been engineered to socialize the losses. I'm happy SP didn't agree to fast track any of those, unlike VTI and Nasdaq100. I spent the weekend to rebalance all my retirement accounts to make sure none of them are going to fast track those grifty IPOs. Unfortunately, I cannot do that for my taxable accounts as it would generate a tax-event.

bmitc

What is prompting SpaceX to IPO all of the sudden? I'm personally convinced that this is Musk trying to get out of debt from his Twitter purchase.

matheusmoreira

Excellent. I was getting ready to reposition due to the risk.