https://k4i.com/tags/index-funds/ Recent content in Index Funds on k4i.com Hugo en-us Tue, 07 Jul 2026 00:00:00 +0000 https://k4i.com/spacex-joins-the-nasdaq-100-why-800b-in-index-funds-have-to-buy-now/ Tue, 07 Jul 2026 00:00:00 +0000 https://k4i.com/spacex-joins-the-nasdaq-100-why-800b-in-index-funds-have-to-buy-now/ <p>SpaceX enters the Nasdaq 100 before the market opens today, and the mechanics matter more than the headline. Index funds and ETFs tracking the Nasdaq 100 — collectively managing on the order of $800 billion in assets — don&rsquo;t get to decide whether they want to own SpaceX. Once the exchange adds it, they have to buy, regardless of valuation.</p> <p><strong>The weighting is smaller than the market cap suggests.</strong> SpaceX priced its IPO at a valuation north of $2 trillion, comparable to Amazon. But Nasdaq 100 weightings are based on free-float market cap — the shares actually available to trade — not total valuation. Insider holdings and lockup-restricted shares don&rsquo;t count. That&rsquo;s why SpaceX is expected to enter at roughly a 1% weighting despite a market cap that would otherwise put it near the top of the index. JPMorgan has estimated the resulting mechanical buying at over $4 billion.</p>