S&P 500 Bars $1.75 Trillion SpaceX for 12 Months as Profitability Rule Delays Entry
Updated
Updated · CNBC · Jun 12
S&P 500 Bars $1.75 Trillion SpaceX for 12 Months as Profitability Rule Delays Entry
3 articles · Updated · CNBC · Jun 12
Summary
SpaceX will be absent from S&P 500 funds until at least mid-2027 after the index committee kept its 12-month IPO waiting period and profitability test unchanged.
A $1.75 trillion valuation was not enough because SpaceX posted a $4.28 billion net loss last quarter, leaving the company short of S&P's earnings requirement even after the waiting period.
Nasdaq and Russell index managers said they would update their rules, meaning investors seeking immediate benchmark exposure to SpaceX will need products tied to those indexes rather than VOO, IVV or SPY.
OpenAI and Anthropic could face the same exclusion after future IPOs, raising the prospect of wider performance gaps among major U.S. indexes and an ETF scramble for alternative SpaceX-linked products.
Will the S&P 500's exclusion of SpaceX spark an 'index war,' forcing a shift in investment benchmarks?
Is SpaceX's IPO a landmark chance for retail investors or the market's biggest wealth transfer to insiders?
Is the S&P 500's profitability rule obsolete in the age of cash-burning tech giants like SpaceX?
SpaceX’s Historic $20B IPO Shut Out of S&P 500: What It Means for Investors and Index Funds
Overview
On June 12, 2026, SpaceX completed its highly anticipated IPO, but the S&P 500 quickly confirmed it would not fast-track SpaceX into its index. As a result, SpaceX will not be immediately added to the S&P 500, fundamentally shifting the investment outlook for those interested in the IPO. Without the usual index inclusion premium, investors must reconsider their strategies. However, SpaceX could still be added to other major indices like the Nasdaq-100, meaning funds tracking the Nasdaq-100 would gain exposure to SpaceX, while those benchmarked against the S&P 500 would not, leading to different investment outcomes.