SpaceX IPO Could Force Millions into Passive Index Funds, Raising Valuation Risks
SpaceX’s planned $1.75 trillion IPO will likely be added to broad market indexes despite its lack of profitability, meaning retail investors in standard 401(k) funds could be compelled to hold the stock at peak prices. The move reflects recent rule changes that loosened index‑inclusion criteria, prompting concerns that passive portfolios may inherit extreme valuation risk.