S&P Dow Jones Indices reviews fast-track entry for megacap companies

8 articles · Updated · MarketWatch · Apr 30

The proposal could cut the S&P 500 listing wait to six months from a year and exempt megacap entrants from profitability rules, potentially aiding SpaceX, OpenAI and Anthropic.
S&P said huge IPOs could quickly become material to investors and benchmarks, even if they lack positive net income under current eligibility standards.
SpaceX was recently valued at $1.25tn and may seek $2tn, while Nasdaq has already approved a similar fast-entry rule and FTSE Russell is exploring one.

Is S&P's rule change a race for relevance against rivals or a true evolution of market indexing?

Are index funds becoming riskier by fast-tracking unprofitable mega-IPOs like SpaceX?