GoKawiilListen to this post
SpaceX went public Friday in the largest IPO Wall Street has ever seen, and most retail investors who wanted shares didn’t get them. But here’s the surprise: you may already own a piece anyway, according to CNBC.
Several actively managed mutual funds built large pre-IPO stakes in SpaceX. The Baron Partners Fund holds SpaceX at roughly 37% of its assets. Fidelity Contrafund, one of the largest mutual funds in America, holds SpaceX as its fifth-biggest position. If you have a 401(k) invested in either of these funds, you already own SpaceX.
Index funds will catch up fast. The Russell 1000 and several other major indexes can add mega-cap stocks like SpaceX within five trading days, meaning funds like the iShares Russell 1000 ETF will soon include it too. The one notable holdout is the S&P 500, which requires a year of profitability before admitting new companies — a bar Tesla took roughly a decade to clear after its own IPO.