SpaceX Nasdaq 100 weight to jump to 2.82% in quarterly rebalance -Bloomberg

SpaceX's weight in the Nasdaq 100 Index is set to soar to 2.82% when the benchmark undergoes its quarterly rebalance on Monday, according to Bloomberg. This significant increase, calculated using Friday's closing prices, finalizes a provisional allocation that will see SpaceX's influence in the index align with its substantial market valuation. Currently, SpaceX holds a modest 1.28% weighting in the gauge, a figure that will rise considerably following the rebalance.

The majority of SpaceX's shares were initially locked up post its listing in July, curbing its index representation despite Nasdaq revising its rules to accommodate newly listed mega-cap companies. This rebalancing move helps rectify an anomaly: SpaceX ranks as the seventh-largest company within the Nasdaq 100, boasting a market capitalization surpassing $2 trillion, yet its current index weighting fails to place it among the top 20 constituents by percentage weight.

The substantial rise in index weight will compel passive funds and exchange-traded funds (ETFs) tracking the benchmark to adjust their portfolios and acquire billions of dollars worth of SpaceX stock to preserve accurate tracking. Among the major funds impacted by this rebalance are the Invesco QQQ Trust Series 1 (QQQ), valued at $482 billion, and Global Benchmark Products, which oversee over $800 billion in assets across more than 200 investment products linked to the Nasdaq 100 index.