Want to Invest in SpaceX? These 2 Unstoppable ETFs Could Be Your Ticket.
Now that Space Exploration Technologies (SPCX 1.98%), better known as SpaceX, is officially a publicly traded stock, retail investors no longer have to look for some kind of backdoor access to invest in it. Institutions, advisors, and regular investors can now access it directly.
Exchange-traded funds (ETFs) will soon include SpaceX stock in their portfolios as well. But the timeline for when it gets added largely depends on the index that the fund tracks. For some, it will show up pretty quickly. For others, it might take a while.
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The most prominent index that is holding off on buying in for now is the S&P 500 (^GSPC 0.47%). S&P Dow Jones Indices recently announced that it would make no exceptions or rule changes for inclusion in its indexes. That means a minimum 12-month wait period for even the “mega-IPOs” SpaceX, Anthropic, and OpenAI.
In other words, SpaceX won’t show up in the S&P 500 until at least June 2027.
Many of the other major index providers, such as CRSP, MSCI, Russell, and the Nasdaq, have less stringent requirements. In fact, some of the indexes (and the ETFs that track them) could see SpaceX included in just a matter of days. And there are probably better ways to gain indirect exposure to SpaceX than by buying a portfolio of space-centric ETFs.
The following two ETFs are great choices for indirect SpaceX exposure:
Vanguard Total Stock Market ETF
Today’s Change
(-0.36%) $-1.32
Current Price
$369.05
Key Data Points
Day’s Range
$367.27 – $371.52
52wk Range
$291.97 – $374.70
Volume
101.5K
Vanguard Total Stock Market ETF
With all of the S&P 500 ETFs off the table for the time being, the Vanguard Total Stock Market ETF (VTI 0.36%) steps in as the next best option. It tracks the CRSP US Total Market Index. This index can add new IPOs after the close of the fifth trading day following the stock’s public debut. Plus, Vanguard says it’s unlikely to make the full allocation to SpaceX all at once, in an attempt to minimize market disruptions.
It’ll be one of the better ways to ease into exposure to the stock.
Today’s Change
(0.11%) $0.78
Current Price
$730.64
Key Data Points
Day’s Range
$724.56 – $735.66
52wk Range
$523.65 – $748.65
Volume
2M
Invesco QQQ ETF
You’re going to have to wait just a little longer for SpaceX to show up in the Invesco QQQ ETF (QQQ +0.11%). Its mirrored index, the Nasdaq-100, has a 15-trading-day waiting period.
But if you want a portfolio where SpaceX fits better thematically, this would be the one. The Invesco QQQ ETF has a lot of the best technological innovators in the world, which SpaceX certainly qualifies as. Plus, as one of the most heavily traded ETFs in the world, it provides easy liquidity and accessibility for all investors.
Buying SpaceX outright might be tempting. But sometimes it’s better to balance it out as part of a broader portfolio. The stock is likely to have a weighting of around 3% in both ETFs when all is said and done. That’s enough to get you meaningful exposure without overdoing it.
SpaceX is likely to trade in a volatile manner for some time. These two ETFs let you participate in the stock’s upside while mitigating some of its downside risk.
