No it’s sp500.
Also the big issue is that there will be billions moving around from ETFs and other entities that have to rebalance.
Pardon the AI ![]()
The forced integration of SpaceX into the S&P 500 introduces structural risks that could trigger severe downward pressure, liquidity drains, and extreme volatility for all other stocks in the index.
If S&P Dow Jones Indices relaxes its long-standing eligibility rules to fast-track the company, index funds will be mechanically trapped into a dangerous “forced-buy-then-reversion” loop.
Because passive index funds (like VOO or SPY) are fully invested, they cannot simply use “new” cash to buy SpaceX. To make room for a projected 2% to 4% target weighting, trillions of dollars in passive ETFs will be legally forced to execute a massive, simultaneous sell-off across all other 499 companies
SpaceX is seeking an astronomical $1.75 trillion valuation, but it is only floating a tiny fraction of its total shares (an estimated $75 billion) to the public initially. Artificial Price Spikes: This supply-and-demand mismatch creates an artificial buying frenzy, temporarily driving SpaceX’s stock price to unsustainably high levels. To absorb this ballooning valuation, index funds must repeatedly sell off even more shares of all other S&P 500 stocks.
The most critical threat to the S&P 500 occurs 6 to 12 months after the IPO, when insider and employee lock-up restrictions officially expire. Mass Insiders Supply Shock: As early venture capital backers and employees aggressively sell their shares to lock in gains, SpaceX’s stock could face a massive price correction. Index Drag: Because SpaceX will hold a heavy weight in the index, a steep drop in its stock price will directly drag down the value of the entire S&P 500, penalizing long-term retirement savers.