The SpaceX IPO Is Finally Here: This Is When It Might Be Coming to Your S&P 500 ETF
Written by David Dierking for The Motley Fool -> Currently, the S&P 500 requires a 12-month "seasoning" period before including stocks in its index. Proposals were made to allow exceptions for the "mega-IPOs" SpaceX, Anthropic, and OpenAI. The committee chose not to make any c
Currently, the S&P 500 requires a 12-month "seasoning" period before including stocks in its index.
Proposals were made to allow exceptions for the "mega-IPOs" SpaceX, Anthropic, and OpenAI.
The committee chose not to make any changes to the rules. This means investors will need to wait at least a year before SpaceX joins the S&P 500.
Space Exploration Technologies (NASDAQ: SPCX) , better known as SpaceX, officially became a publicly traded company on Friday, June 12, in what was the largest initial public offering (IPO) ever.
From the exchange-traded fund (ETF) industry's perspective, the natural question is when the stock will start showing up in the biggest funds. For ETFs tracking indexes, it's really up to the index providers' rules as to when new issues qualify for inclusion. Some can begin adding stocks like SpaceX in just a few days. Others require a longer wait.
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S&P Dow Jones Indices made the somewhat surprising decision earlier this month that it would not be fast-tracking high-profile mega-IPOs into its indexes.
The current rules applied by S&P Global (NYSE: SPGI) call for a 12-month "seasoning" period. It basically calls for new issues to trade on an eligible exchange for one year before being considered for addition to an index.
