One of the biggest headline-grabbing investment stories of the year occurred on June 12, when 5% of privately owned SpaceX was sold to the public through the largest IPO in history.
The goal of the IPO was to raise $75 billion in capital and achieve a market value of roughly $1.77 trillion.
After initial investor exuberance, reality set in. After peaking at around $211 per share on June 16, the price has fallen around 25% since then, as of this writing.
An instant “megacap”
The sheer size of the IPO instantly made SpaceX a megacap—one of the largest companies in the world in terms of market capitalization. Valuation-wise, it now rubs shoulders with high-tech heavyweights like Microsoft, Meta and Amazon.
To own…or not to own
Many investors who missed out on the IPO are wondering whether the mutual funds in their taxable accounts, IRAs or 401(k) plan accounts will give them exposure to SpaceX.
Some want that exposure. Others may not.
So, which funds are likely to add shares?
Actively managed funds jumping on the bandwagon
A number of actively managed mutual funds now own shares of SpaceX. Their portfolio managers weighed the return versus risk potential of the stock and decided to jump in.
So, how do you know if any of your mutual funds owns shares?
The easiest way is to review their holdings. All mutual funds must publicly report their holdings on at least a monthly basis. You can find this information online at the mutual fund company’s website.
Index funds: Some yes, some no
Index funds are designed to deliver performance that mirrors a specific index. Most do so by investing in the stocks that comprise that index.
So, the question of whether an index fund invests in SpaceX really depends on whether it’s eligible for inclusion in the index itself.
For example, since SpaceX is already a large cap stock, it won’t be added to most small-cap indices and index funds.
However, the tech-focused NASDAQ-100 added SpaceX a month after its IPO. It’s also been fast-tracked into several Russell and MSCI indices.
For investors, this means that many index funds aligned with these indexes will also be adding shares of SpaceX to their portfolios.
S&P 500 index funds: Wait and see
These funds are designed to deliver performance that mirrors that of the S&P 500, an index comprised of the largest companies in America based on market capitalization.
But SpaceX hasn’t been added to the S&P 500 and won’t be for at least a year.
Why? For several reasons.
The S&P 500 requires newly public companies to wait 12 months before they can be included in the index.
The S&P 500 also requires newly public companies to show positive net income across the previous four quarters before they can be included.
And generating positive income results consistently has been SpaceX’s Achilles heel.
The company hasn't turned a profit since 2024. In 2025, it posted a net loss of $4.9 billion. In the first quarter of 2026, it lost an additional $4.3 billion. So, unless the S&P 500 changes its rules, SpaceX won't be eligible to join the S&P 500 until the spring of 2027 at the very earliest, and that’s assuming the company has dramatically turned its fortunes around.
How will holdings in SpaceX affect fund performance?
In reality, SpaceX probably won’t have a significant positive or negative impact on the performance of the funds that own it.
Remember, most funds offer the benefits of diversification. By holding positions in many different stocks, the impact of a share price decline in one stock may be offset the rising price of another.
Also, industry regulations prevent any fund from allocating more than 25% of its assets to a single stock.
What if you don’t want SpaceX in your portfolio?
If you don’t want exposure to SpaceX or other specific companies in your portfolio, you may have to limit your investment universe.
For example, if SpaceX eventually gets added to the S&P 500, most S&P 500 index funds will add shares to their portfolios. If assets in your 401(k) account are invested in a target date fund, chances are high that a small portion of the fund's large cap allocation will be invested in SpaceX.
Are you willing to give up the potential long-term benefits of these funds to avoid owning a single stock?
These are issues that require serious thought. That’s why you may want to talk to a financial advisor, who can objectively guide you through this complex decision-making process.
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This article was authored by David Jaeger and Jeffrey Briskin. David is a financial advisor with Canby Financial Advisors, LLC, an Investment Adviser registered with the U.S. Securities & Exchange Commission. SEC registration does not constitute an endorsement by the SEC nor a statement about any skill or ability. David can be reached at 508.598.1082 or djaeger@canbyfinancial.com. Jeffrey Briskin is Director of Marketing at Canby Financial Advisors.
©2026 Canby Financial Advisors, LLC.