Key Points

Passively managed exchange-traded funds act as key owners of the limited SpaceX shares trading on the Nasdaq.
ETFs plan to purchase additional SpaceX shares once the float expands.
Numerous ETFs will skip SpaceX purchases even after potential S&P 500 inclusion.
10 stocks we like better than Space Exploration Technologies ›

Investment firm Vanguard has refreshed holdings across its index funds and exchange-traded funds.

The second-largest ETF by net assets, the Vanguard Total Stock Market ETF (NYSEMKT: VTI), owns 18,738,438 shares of Space Exploration Technologies (NASDAQ: SPCX) valued at $3.2 billion as of June 30. This equals 3.4% of the 555 million shares SpaceX issued at $135 during its IPO. SpaceX also secured another $10.7 billion via underwriter options. The main insight involves the rapid pace and scale of ETF purchases of SpaceX stock.

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Investors should understand SpaceX effects on popular low-cost ETFs along with portfolio strategies for gaining or avoiding exposure.

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ETFs purchase SpaceX shares quickly

The Vanguard Total Stock Market ETF bought a large portion of SpaceX float in June at prices above the current $118.24 level. Meanwhile, Vanguard's top ETF by assets, the Vanguard S&P 500 ETF, will wait until SpaceX joins the S&P 500, possibly no earlier than June 2027.

The Vanguard Total Stock Market ETF SpaceX stake roughly matches the combined holdings of eight other Vanguard ETFs that acquired SpaceX in June.

Even a $3.2 billion position equals just 0.14% of this large fund. Moreover, 109 stocks carry greater weights inside the ETF than SpaceX.

Other Vanguard ETFs show higher percentage allocations to SpaceX. SpaceX already comprises 2.4% of the Vanguard Communication Services ETF (NYSEMKT: VOX), a sector fund focused on communication services names such as Alphabet, Meta Platforms, and Netflix.

The sector ETF's narrower focus leads to larger SpaceX positions compared with broad funds like the Vanguard Total Stock Market ETF that target the full U.S. market. Growth-oriented ETFs such as the Vanguard Growth ETF and Vanguard Mega Cap Growth ETF likewise hold more SpaceX than the broad total market fund.

Matching ETF holdings to IPO interest

The Vanguard Total Stock Market ETF secured a sizable SpaceX stake less than three weeks after the IPO, highlighting ETF influence on demand for new public companies. These ETFs will likely acquire still more SpaceX shares as additional shares reach the Nasdaq.

The schedule hinges on the SpaceX lockup period and decisions by holders of restricted stock units or early-release shares. The initial test arrives on Aug. 6, two days after SpaceX posts second-quarter 2026 results, when 20% of early-release shares become transferable.

Investors seeking to avoid rules-based ETFs that will add SpaceX shares as they list should examine funds whose rules exclude SpaceX, including the Vanguard Value ETF, the Vanguard Dividend Appreciation ETF, or non-communications sector ETFs. Those favoring ETFs that will increase SpaceX exposure may examine the Vanguard Communication Services ETF.

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Daniel Foelber holds positions in Netflix. The Motley Fool holds positions in and recommends Alphabet, Meta Platforms, Netflix, Vanguard Dividend Appreciation ETF, Vanguard Growth ETF, Vanguard S&P 500 ETF, and Vanguard Value ETF. The Motley Fool maintains 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.