Don't Want Exposure to SpaceX? Why Investing in These Types of ETFs May Be the Way to Go
Many funds will soon include SpaceX, and that can make them riskier and more volatile. But that doesn't include ones that track the S&P 500.
Overview
Space Exploration Technologies (NASDAQ: SPCX) recently went public, and the stock, which also goes by just SpaceX, will soon be added to many index funds. That may not sit well with risk-averse investors who don't want exposure to the extremely expensive stock, which trades at more than 100 times its revenue and which is already among the most valuable companies in the world, despite incurring massive losses.
There's ample incentive to avoid exposure to SpaceX, as the stock may not only prove volatile but also carry significant downside risk given its extremely high valuation. For investors who want to steer clear of SpaceX, funds that track the S&P 500 may be the way to go right now.
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Originally published at www.fool.com.