All that an inclusion of these new companies would accomplish is a bailout of their stockholders by pension funds and ETFs where millions of regular people shoulder all the downside risk.

SpaceX and OAI stock will be available through Robinhood, Questrade and all the other retail investor markets. Individuals can make an informed choice to trade it there, rather than have it automatically added to their index fund without having any say.

Sudden outbreak of common sense.

SpaceX is going "public" with only 4% of the stock being sold to outsiders. The S&P 500 requires a 50% public float. That may disqualify SpaceX for a long time.

Although GOOG and META are listed, despite control being held by insider shares of a different class. There was a time when the NYSE did not permit companies with more than one class of stock to be listed on that exchange. (Except F, FORD, which predates the NYSE). That was lost some time around 1990 or so.

e.g.

- DotCom boom was letting companies IPO even if they had no revenue

- Great Recession was due to loosening credit restrictions for mortgages e.g. giving people NINJA (no income, no job) loans

so very curious to see how this plays out.

Nasdaq changed its rules recently so SpaceX can join the Nasdaq 100 Index, a cohort of the largest non-financial companies listed on its exchange, in just 15 trading days, down from a three-month minimum. FTSE Russell adopted a similar approach, shortening the waiting time to five trading days.

> S&P Global said it would modify entry rules for its broader S&P Total Market Index and Dow Jones U.S. Total Stock Market Index, creating a pathway for SpaceX to join those less widely followed indexes.

So not really as principled as it seems

https://www.reuters.com/business/finance/sp-global-keeps-fas...

Just to play devils advocate though, what are the downsides of not having 3 of the biggest 10 in the world not in your fund, if you hold to track broad market performance? Wouldn’t that have a massive blind spot on AI related growth?

Whether or not I personally think ai is over hyped or not, the whole point of these ETFs is to make sure I don’t get a say in the matter, since I’m a terrible stock picker

https://www.nasdaq.com/articles/new-fast-tracks-account-olde...

It can still be a passive fund, not the end of the world.

Index trackers hire talented people surely they can add a waiting clause in their tracks too, just like S&P.

If your index isn't adding waiting clause, it's simply because they are greedy.

The insiders know it, which is precisely why those IPOs are happening right now. Employees and VCs don't want to be holding the bag. small-time investors will be.

Also, SpaceX is going to unlock more and more on their float at around the same time most indexes will have to buy it. It has been engineered to socialize the losses.

I'm happy SP didn't agree to fast track any of those, unlike VTI and Nasdaq100. I spent the weekend to rebalance all my retirement accounts to make sure none of them are going to fast track those grifty IPOs. Unfortunately, I cannot do that for my taxable accounts as it would generate a tax-event.

Before the flood of money from the index funds arrive, I'd love to see what's the right valuation for them.

In Spain, it's much better to use mutual funds rather than ETFs (for tax reasons) so I didn't have as much choice of funds to avoid these IPOs.

* https://press.spglobal.com/2026-06-04-S-P-Dow-Jones-Indices-...

But it's written in a rather confusing manner so I'm not certain.

* https://archive.is/15pOn

I see a lot of comments saying things to this effect: "S&P 500 is just a metric/benchmark, not a fund, so it should consider the whole market even if that includes a newly-listed but very large company." And yeah, the S&P 500 is an index, not a fund.

But you know what is a fund? SPY, VOO, IVV, FXAIX, and loads of others. Regardless of what institution(s) manage your retirement accounts, you are almost certainly benefitting from the S&P 500 filtering out post-IPO fuckery.

The market has plenty of other options available for folks that just want to bet the house on red and hope for the best.

I wonder how much of this decision is driven by recent media coverage about ETF holders getting screwed

I'm personally convinced that this is Musk trying to get out of debt from his Twitter purchase.

Long listen but a very thorough and nuanced discussion by a bunch of smart investment / finance guys in Canada. No click-bait-sky-is-falling content.

(It was a common misconception on this thread: https://news.ycombinator.com/item?id=48364055.)

Good. Looks like there's still a bit of sanity left in this world.

Although I am in my 40s I had already forgotten a lot- but yeah I was there in the 1990s. Repressed traumatic memories. Dutch consumers really soured on stocks when that house of cards collapsed.

I would say "it is happening again" but at least now we have bots who trade for us in milliseconds (although those didn't save anyone in 2008).

It won't matter for your portfolio. Your portfolio will keep growing.