SpaceX Could Join Nasdaq-100 Soon After Massive IPO, but S&P 500 Is Years Away

SpaceX’s blockbuster public offering, which gave the company a market value of about $1.8 trillion, is expected to reshape passive investing as index funds prepare for its likely inclusion in major U.S. benchmarks. Because of its enormous size, the company is seen as an immediate candidate for fast-track entry into leading stock indexes.

The most likely first stop is the Nasdaq-100, Nasdaq’s flagship index. After a rule change that took effect in May, newly listed companies with extremely large valuations can be added after only 15 trading days. On that timeline, SpaceX is expected to meet the requirements and enter the index by the end of June or the beginning of July.

FTSE Russell also changed its rules this year for major IPOs, making SpaceX a likely addition to the Russell 1000 and Russell 3000 at the next index rebalancing, probably in the second half of the year. By contrast, S&P Dow Jones Indices decided last week not to relax the entry rules for giant offerings.

That means SpaceX cannot join the S&P 500 until at least mid-2027. In addition to a 12-month waiting period as a public company, it must also satisfy the index’s profitability requirement, which calls for four quarters of GAAP profit, a condition it does not currently meet. For investors, that means ETFs and index funds tracking the Nasdaq-100 and Russell indexes may begin buying SpaceX shares in the coming weeks, while S&P 500 trackers must wait at least another year.