SpaceX's IPO Is Reshaping the Most Popular ETFs on Wall Street. Here's What That Means for Your Portfolio.
SpaceX is one of the 10 largest companies in the world. But its presence in the major ETFs thus far has been relatively minimal.
Overview
Since its debut as a publicly traded company roughly one month ago, Space Exploration Technologies (NASDAQ: SPCX) has been one of Wall Street's more volatile stocks. From its initial public offering (IPO) price of $135 to its high of $225 in mid-June to its July 9 closing price of roughly $152, SpaceX (as the company is also known) has already experienced some serious highs and lows.
Concerns over this volatility have now spilled over into the fund space, where some of the world's biggest exchange-traded funds (ETFs) have begun adding shares to their portfolios. Funds that track one of the CRSP market indexes, such as the Vanguard Total Stock Market ETF (NYSEMKT: VTI), could begin adding shares in as little as five trading days post-IPO. On July 7, SpaceX joined the Nasdaq-100 under its newly implemented fast-track rules for mega-IPOs.
Details
SpaceX has around a $2 trillion market cap, making it one of the 10 largest companies in the world. It's natural to assume that the stock would also be a major part of these ETFs, and its volatility would come with it.
Source
Originally published at www.fool.com.