SpaceX, now worth $2.1 trillion, has launched its stock on Wall Street, rising 19.2% in its debut. This significant event will likely impact investors and their 401(k) accounts, as many index funds track the performance of large companies like SpaceX.
Index Funds and 401(k) Accounts
Index funds, which mimic the performance of specific indexes, have become a popular investment option due to their lower costs and often better performance compared to actively managed funds. In fact, only 21% of actively managed U.S. stock funds survived and beat their average index peer over the last decade, according to Morningstar’s data through 2025.
As a result, investors have increasingly invested in U.S. index funds, with more money invested in these funds than in actively managed ones beginning in 2024. The gap has only grown since then, with many index funds tracking the performance of the S&P 500, one of the most influential indexes in the investment industry.
SpaceX and Indexes
SpaceX’s large market value makes it a likely candidate to join some high-profile stock indexes, such as the Nasdaq 100 index. If SpaceX maintains its current value, it will likely gain entry into these indexes, which could lead to a significant increase in its stock price.
However, not all indexes are making changes to fast-track big IPOs like SpaceX. The company behind the S&P 500, for example, requires a stock to trade on an eligible exchange for at least 12 months before it can join the index, and the company must have made a profit in its most recent quarter and over the sum of its last four quarters. SpaceX, which lost $4.9 billion last year and another $4.3 billion through the first three months of 2026, does not currently meet these requirements.
Some investors, including officials from pension funds for firefighters, teachers, and other workers in California and New York, have expressed concerns about SpaceX’s corporate governance, including the significant power held by CEO Elon Musk. These investors may become owners of SpaceX stock through their index funds, which could lead to concerns about the company’s leadership and decision-making processes.
Original reporting: KTBS 3 (Shreveport) — read the source article.
