[stingraycharles]

From what I understand, SpaceX has been engineered such that all kinds of passive investment funds (pension funds, ETFs) will buy into it at their first rebalancing, and as such it should get a decent amount of volume after open.

Having said that, it’s the company I have least faith in due to the recent acquisition of xAI / Twitter.

[JumpCrisscross]

> SpaceX has been engineered such that all kinds of passive investment funds (pension funds, ETFs) will buy into it

Pension funds are rarely passively run. They tend to be sophisticated investors. For example, several pension funds are already investors in SpaceX.

NASDAQ 100 will include SpaceX after a couple weeks. But it's a tech fund. It's strange to complain about buying the largest tech company in a tech fund. Similarly, S&P total market and Russell total market will buy early. But again, those are total-market funds. If you want to actively manage your portfolio, don't buy total-market funds.

[blourvim]

I heard that the rule changes which would allow SpaceX to be auto bought by those funds has been blocked, previous stock seasoning rules will apply

[JumpCrisscross]

> the rule changes which would allow SpaceX to be auto bought by those funds has been blocked

Nothing was blocked. S&P 500 never adopted them. Influencers misunderstood what a consultation document is and presented a question as a fait accompli.

NASDAQ 100 changed its rules, as did S&P and Russell's total-market funds. But for NASDAQ 100 I'm going to go ahead and say this was a brilliant market move, since nobody ever talked about that index before this.

[siren2026]

> But for NASDAQ 100 I'm going to go ahead and say this was a brilliant market move, since nobody ever talked about that index before this.

Most people know the NASDAQ100 as its ticker QQQ. Also known as the high risk - high reward investment.

After reading how Nasdaq changed the rules in order to court all the mega IPOs to list with them, I will never ever consider a Nasdaq fund again. The rule change about the available float is especially shocking.

[JumpCrisscross]

> After reading how Nasdaq changed the rules in order to court all the mega IPOs to list with them, I will never ever consider a Nasdaq fund again

We have zero evidence for that chain of causation. And we have zero evidence of significant outflows for NASDAQ 100 since this rule change. (There is early evidence of inflows, but I suspect that's just because nobody talked about the NASDAQ 100 before and this turned out to be a brilliant marketing move.)

[siren2026]

I agree with you that this might be a good marketing move overall.

And I don't really care about the chain of causation. The change of rules for the available float and the fact those funds will buy based on the market cap and not the float makes it a completely irresponsible investment at this point.

[JumpCrisscross]

> fact those funds will buy based on the market cap and not the float makes it a completely irresponsible investment at this point

It's an index. The conventional way to market weight is to use market cap. The float rules are mostly for technical reasons around transaction costs for very large indices. There is a theoretical argument for float weighting, inasmuch as if you bought the stock market you'd be buying the float, not all of all of the companies. But I haven't seen research to say one way is definitively better than the other.

I agree they should have probably paired the float-rule change with a gradual onramp. But again, NASDAQ 100 isn't big enough to really need to care about this. (Half a trillion is obviously a lot of money. But not relative to the equity markets, and not when spread across a hundred of the largest names.)

[kasey_junk]

Crsp changed as well.

[JumpCrisscross]

> Crsp changed as well

Yes. For their total-market fund. That makes sense. (CRSP is probably the most-significant index to make the change. But even then, it won't be a significant source of demand. Total market means lots of components.)