Key Points

S&P Dow Jones Indices rejected plans to accelerate company inclusions in the S&P 500.
Regardless of size, firms require at least 12 months of public trading history before qualifying for the S&P 500.
Meanwhile the Nasdaq-100 appears headed in a contrasting path compared to the S&P 500.
10 stocks we like better than Vanguard S&P 500 ETF ›

S&P Dow Jones Indices issued a major announcement on June 4, withdrawing its prior idea to speed up megacap additions to the S&P 500 (SNPINDEX: ^GSPC).

The decision will shape upcoming large-scale public offerings such as those from SpaceX, Anthropic, and OpenAI, along with steps investors might take for ETF-based access to these firms.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Image source: Getty Images.

IPOs on an unprecedented scale

On April 30, S&P Dow Jones Indices floated the notion of shortening the IPO seasoning window to hasten megacap entries. Megacaps are defined as the 100 biggest firms in the S&P 500 Total Market Index, equating to roughly $157 billion or more in market value at current levels. The seasoning window allows firms to demonstrate reliability via precise filings, solid governance, and sustained valuations.

SpaceX seeks $75 billion at a $1.77 trillion valuation, positioning it among the top 10 S&P 500 members. On May 28, Anthropic secured $65 billion at a $965 billion valuation. On March 31, OpenAI obtained $122 billion at an $852 billion valuation.

The record IPO occurred in 2019 when Saudi Arabian Oil raised $25.6 billion at a $1.7 trillion valuation. Yet Saudi Arabian Oil operates outside the U.S. and stays absent from the S&P 500 or Nasdaq Composite (NASDAQINDEX: ^IXIC).

The U.S. market has never seen IPOs matching the magnitude of SpaceX, Anthropic, and OpenAI, especially three within a single year.

SpaceX's impact on the Nasdaq and major ETFs

Fast-track inclusion aimed to deliver index fund holders prompt access to fresh public companies instead of waiting for further growth that might cause missed upside. Yet the June 4 statement from S&P Dow Jones Indices clarified that waivers for financial strength, seasoning, or investable weight rules will not hinge only on market size. Thus a firm cannot bypass the process after private fundraising rounds and must complete a full 12-month seasoning interval.

Still, SpaceX, Anthropic, and OpenAI could secure quicker entry to the Nasdaq-100, covering the 100 largest non-financial Nasdaq-listed firms by market value. On May 8, Nasdaq released a methodology revision suggesting weighted treatment for qualifying IPO firms at three to five times their float. For SpaceX this implies $225 billion to $375 billion, creating a sizable but not dominant Nasdaq-100 position.

Should the Nasdaq-100 retain its fast-track rules, Nasdaq-100 products like the Invesco QQQ Trust (NASDAQ: QQQ) could supply ETF exposure to these prominent IPOs. SpaceX's SEC Form S-1 filing signals plans for Nasdaq and Nasdaq Texas listing under ticker SPCX.

Another route beyond the Invesco QQQ Trust involves low-cost ETFs tracking benchmarks other than the S&P 500. The Vanguard S&P 500 ETF (NYSEMKT: VOO) follows the S&P 500, delaying purchases of SpaceX, Anthropic, or OpenAI until index membership. In contrast the Vanguard Total Stock Market ETF (NYSEMKT: VTI) tracks the CRSP U.S. Total Market Index and the Vanguard Growth ETF (NYSEMKT: VUG) follows the CRSP U.S. Large Cap Growth Index. These vehicles can acquire the new listings soon after IPO, applying float-based weights rather than full market-cap allocations.

Positioning your portfolio for the megacap IPO era

Typically investors can overlook a new listing if uninterested. Yet SpaceX, Anthropic, and OpenAI are large enough to prompt changes in index and ETF rules.

The June 4 release indicates the S&P 500 will diverge from Nasdaq practices, leaving S&P 500 index holders without exposure to these major IPOs until at least June 2027. At sustained valuations of $1.77 trillion, $965 billion, and $852 billion the trio would total $3.59 trillion, exceeding Microsoft and trailing only Nvidia, Alphabet, and Apple. Even without immediate S&P 500 entry they could reshape the index promptly.

Investors seeking rapid ETF ownership of these new public companies should examine funds using non-S&P 500 benchmarks, while those preferring to sidestep the IPOs might select ETFs with rules that exclude them, such as the Vanguard Value ETF or the Vanguard Dividend Appreciation ETF.

Should you buy stock in Vanguard S&P 500 ETF right now?

Before you buy stock in Vanguard S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*

Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 6, 2026.

Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, Nvidia, Vanguard Dividend Appreciation ETF, Vanguard Growth ETF, Vanguard S&P 500 ETF, and Vanguard Value ETF. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.