Space Exploration Technologies Corporation, better known as SpaceX, will be included in the Nasdaq-100 Index on July 7, 2026, before the market opens. This addition highlights the company’s significant presence in the technology and aerospace sectors. However, as far as inclusion in the S&P 500 index is concerned, SpaceX shares will be added to the S&P 500 index after one year, as confirmed by S&P Global.

For investors looking to acquire SpaceX shares, either directly or through ETFs, four things matter most: how the stock price has moved since listing, how much passive buying to expect, what weightage SpaceX will carry in the Nasdaq-100, and which ETF offers the best exposure.

How Has the Stock Price Moved?

SpaceX’s early trading life has been a volatile one. SPCX shares were first offered at $135 during the IPO and listed at $150 on June 12. They surged to a peak of $225 on June 16, but have since lost momentum, currently trading around $160. That represents a 28% decline from the peak price in just a matter of weeks.

The Passive Buying Wave

SpaceX’s inclusion in the Nasdaq-100 is set to trigger a significant wave of mandatory passive buying. ETFs and index funds that track the Nasdaq-100 are required to buy shares of any newly added company, creating automatic buying pressure that generally pushes prices higher.

Mutual and exchange-traded funds holding a total of $800 billion in assets under management, tracking Nasdaq’s primary tech index, which includes the widely known Invesco QQQ ETF, will purchase SpaceX shares at the closing price on Monday to replicate the index’s performance. J.P. Morgan has projected that SpaceX’s entry into the Nasdaq-100 may attract $4.3 billion in passive inflows.

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What Will SpaceX’s Weight Be in the Nasdaq-100?

Despite its enormous market capitalisation, SpaceX will not rank among the top components of the Nasdaq-100 — at least not initially.

The Nasdaq-100 includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market, ranked by market capitalisation. The top three companies by weightage currently are NVIDIA (8.69%), Apple (7.64%), and Microsoft (5.64%).

SpaceX, despite its impressive market capitalisation of $2.1 trillion, will be treated very differently. Nasdaq modifies index weights based on a company’s free-float, the number of shares available for public trading, and limits the weight to three times the float-adjusted market capitalisation. As a result, SpaceX will be evaluated more as a $300 billion entity rather than a $2 trillion one, leading to an initial index weight of under 1%.

Which ETF Gives You the Best SpaceX Exposure?

For investors who do not want to buy SPCX directly but want exposure, ETFs tracking the Nasdaq-100 are the most straightforward route.

The Invesco QQQ Trust (QQQ), with approximately half a trillion dollars in assets, is the largest fund tracking the Nasdaq-100 and the fifth-largest ETF overall. Both QQQ and the Nasdaq-100 have recorded gains of over 17% year-to-date and 30% over the past year. QQQ has risen over 600% in the last decade.

Launched on March 10, 1999, QQQ is traded on the Nasdaq Stock Exchange, offering a low-cost investment option with a Total Expense Ratio and Management fee of 0.18% each.

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The Bottom Line

QQQ’s performance is driven primarily by the major tech companies in the technology sector, with a notable boost from the recent AI wave sweeping through Nasdaq stocks. SpaceX’s inclusion adds an exciting new dimension, but it should not be the only reason to invest in QQQ.

Investors are encouraged to view QQQ for its overall value rather than focusing solely on SpaceX stock while keeping diversification across US stocks firmly in mind.

Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Investment in foreign securities involves significant risks, including currency fluctuations, different financial reporting standards, and varying regulatory environments. It is not a recommendation to invest in any specific U.S.-listed stock. Readers are advised to consult a qualified financial advisor before making any investment decisions.