SpaceX is about to get a major boost. Nasdaq has announced that Space Exploration Technologies Corporation (Nasdaq: SPCX) will become a component of the Nasdaq-100 Index before the market opens on Tuesday, July 7, 2026.

Inclusion in an index is a significant event for any stock. ETFs and index funds that track the Nasdaq-100 are required to mandatorily purchase shares of any newly added company, creating automatic, passive buying pressure that typically pushes prices higher. J.P. Morgan has projected that SpaceX’s entry into the Nasdaq-100 may attract $4.3 billion in passive inflows.

SpaceX’s Weight in the Nasdaq-100

Despite the fanfare, SpaceX’s actual weight in the Nasdaq-100 is likely to be relatively modest — smaller than several other large-cap companies in the index.

Under the new Nasdaq-100 methodology, companies with a free float below 33.33% have their index weight calculated as a fraction of their total market capitalisation, increasing proportionally as the float rises. Once the float exceeds that threshold, the company is represented at its full listed market capitalisation. This ensures index weight scales with available supply, rather than flipping abruptly.

Eshaan Lazarus, Founder and CEO, 021 Trade, explains: “SpaceX offered roughly 3% of its shares to the public. According to new regulations, a company floating less than 20% has its index weight calculated at three times its float, not based on its full market capitalization. As a result, SpaceX will have an index weight of about $160 billion. Nasdaq-100 funds will provide exposure to SpaceX, but only a minimal share at approximately 0.5% of the index.”

The Nasdaq-100 Index consists of 100 major non-financial companies, both domestic and international, listed on the Nasdaq Stock Market and ranked by market capitalisation. It covers sectors including computer hardware and software, telecommunications, retail, wholesale trade, and biotechnology, but excludes financial companies entirely.

Where Do SPCX Shares Stand?

SpaceX shares have had a volatile ride since their debut. Initially offered at $135, they listed at $150 and peaked at $225 but have since lost momentum, currently trading around $153. SPCX shares have fallen 33% from their peak price of $225 on June 16.

This means initial investors after listing could be sitting on ultra-thin profits, while most secondary market investors are likely to be at a loss.

SpaceX’s market cap stands at over $2 trillion, still making it the seventh most valuable company globally — but it has fallen behind Amazon and TSMC, both of which it had briefly overtaken after debuting on June 12.

More Passive Buying on the Way

The Nasdaq-100 inclusion is just the beginning of a wave of passive buying for SPCX. Several exchange-traded funds, index funds, and Fund of Funds, both listed in the US and abroad, will automatically gain exposure to SpaceX stock once SPCX is included in the index.

FTSE Russell is also adding SpaceX to its US and global benchmarks, including the Russell 1000, on Monday, the week before the Nasdaq-100 inclusion. This move is anticipated to generate at least $5.4 billion in buying from index-tracking funds, as estimated by Bloomberg Intelligence strategist Rob Du Boff.

Options for Indian Investors

Indian investors looking to gain exposure to SpaceX through the Nasdaq-100 have several fund options available. Non-US listed funds accessible to Indian investors include MOSt Shares NASDAQ-100, SBI Invesco QQQ NASDAQ100 Index Fund, and Kotak NASDAQ 100 Fund of Fund.

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For those seeking a single investment covering all Nasdaq-100 stocks, the Invesco QQQ Trust (QQQ) is worth considering. It allocates 66% to technology and 17% to consumer discretionary stocks. Both QQQ and the Nasdaq-100 have risen over 15% year-to-date and 29% over the past year. Launched on March 10, 1999, the Invesco QQQ is listed on the Nasdaq stock exchange and is a low-cost option, with a Total Expense Ratio of 0.18% and a Management fee of 0.18%.

What Should Retail Investors Do?

The passive buying wave from the Nasdaq-100 and Russell index inclusions could squeeze short sellers, who may find themselves pushed into a corner. However, the silver lining for short sellers is the eventual opening of the lock-in period for SPCX shareholders, which could bring additional supply.

In the short-to-medium term, SPCX share prices will be hugely influenced by demand and supply dynamics, making it a volatile ride. For retail investors, it is better to stay away until volatility eases.

It is worth noting that Nasdaq and other index providers like FTSE Russell and MSCI have already relaxed their entry requirements, including those related to profitability, the number of days post-IPO, and share availability for trading, making SpaceX’s early inclusion possible in the Nasdaq-100 index. However, SpaceX shares will be added to the S&P 500 index at least after one year, as announced by S&P Global, giving long-term investors another potential milestone to watch.

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 or not to invest in any specific US listed stock. Readers are advised to consult a qualified financial advisor before making any investment decisions.