Want Nothing to Do With SpaceX? Buy This Ultra-Low-Cost Dividend Growth ETF in June.
The Vanguard Dividend Appreciation ETF is the perfect fit for investors looking to build a portfolio around high-quality companies that pay growing dividends.
Want Nothing to Do With SpaceX? Buy This Ultra-Low-Cost Dividend Growth ETF in June.
Overview
SpaceX is expected to hit public markets on June 12, raising $75 billion at a $1.77 trillion valuation. With a smaller initial public offering (IPO), investors can simply ignore the news and not buy the stock. But SpaceX is so large that it is transforming the way indexes respond to megacap IPOs.
While the S&P 500 (SNPINDEX: ^GSPC) will not be adding SpaceX any time soon, the Nasdaq-100 -- the 100 largest non-financial stocks listed on the Nasdaq Composite -- is rewriting its index methodology to fast-track the inclusion of megacap companies like SpaceX, Anthropic, and OpenAI to give index fund investors quicker access to these companies.
Details
While the fast-track rules are great news for investors who want a piece of these companies through their index fund holdings, it can be unsettling for folks who believe these companies are going public at sky-high valuations and could drag down the major indexes. What's more, many growth-focused exchange-traded funds (ETFs) will likely be buying SpaceX once it gets added to the indexes, which puts investors who want to buy growth stocks, just not SpaceX, in a difficult spot.
Source
Originally published at www.fool.com.
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