Retirement Savers May Now Own Shares of SpaceX and Not Even Know It

Millions of Americans might have investments in SpaceX as part of their retirement plan without even knowing it. When SpaceX, Elon Musk's aerospace and satellite communications company, went public on Friday, shares may have been quietly introduced into millions of retirement accounts without the account holders having to do a thing. Index funds must buy whatever stocks are added to the indexes they track, so if you have index funds in your 401(k) or IRA, you may already or might soon own shares of SpaceX.

Here's what to know about SpaceX shares and whether you might own them.

Fast-tracking SpaceX

Musk pushed to have SpaceX shares added into index funds earlier than usual, and thanks to fast-entry rules, those shares may be added to certain index funds at a pace that's faster than normal. Traditionally, the waiting period is three to twelve months, but SpaceX stock may be added to FTSE Russell indices within just five trading days, and it may be added to the Nasdaq-100 within 15 days.

The funds that are affected

SpaceX funds may be added to index funds at different times. With the new fast-track rule, total-market funds tracking the CRSP U.S. Total Market Index, such as Vanguard's VTI, may add SpaceX within five days after its listing, which would be Friday, June 19.

SpaceX should reach MSCI next, which has a 10-day timeline.

The Nasdaq 100 index has a 15-trading-day timeline and may add SpaceX stock if it's reached the top 40 stocks. If SpaceX hasn't climbed into the top 40, the Nasdaq 100's timeline extends to about three months.

Funds that aren't yet affected

The S&P Dow Jones Indices pushed back against Musk's request for the fast-track rule. The indices still require 12 months and four consecutive quarters of profitability before adding SpaceX shares.

Additionally, SpaceX doesn't meet the S&P Dow Jones Indices' profitability requirement, since the company reported a $4.9 billion net loss in 2025. SpaceX shouldn't be eligible for addition to the S&P until at least 2027.

The company's profitability might limit its eligibility for the Dow Jones again in the future, since SpaceX has already lost $4.28 billion in the first quarter of 2026. Musk remains positive about its outlook, though, stating that it might be able to reach $1 trillion in revenue in 2030.

Since SpaceX hasn't yet been added to the Dow Jones, VOO, SPY, and IVV holders aren't yet affected by the stock.

The potential impact of SpaceX stock

During its first day of trading, SpaceX reached a $2 trillion valuation, but its actual impact on the stock market is likely to be much smaller. Since SpaceX is only offering about 4 to 5% of its total shares publicly, its initial weighings are expected to be 1% or less.

If you have a target-date fund with a 60/40 equity-bond split, the actual exposure might be about $90 out of every $100,000 invested.

The fast-track effect on passive investors

The fast-track rule allowing SpaceX stock to enter indices early may have a negative impact on passive investors. State officials, including New York State Comptroller Thomas DiNapoli, New York City Comptroller Mark Levine, Illinois State Treasurer Michael Frerichs, and Maryland Comptroller Brooke Lierman sent a letter to FTSE Russell, which relaxed its protections and allowed the fast-entry rule. The letter called for the company to hit pause on the fast-entry rule until a formal analysis could be completed.

The group also sent a letter to Nasdaq, arguing that the fast-entry rule might allow for fund mispricing, leaving passive investors to potentially pay the price.

The response to SpaceX

The introduction of SpaceX stock could be an opportunity to incorporate a company known for cutting-edge technology into your portfolio, but many investors aren't pleased with the addition.

The Guardian asked people in the United States how they felt about the SpaceX initial public offering, and more than 150 responses overwhelmingly expressed concern. People noted that they were worried about their savings being tied to major technology firms, and they referenced fears about issues like market instability and the questionable sustainability of AI long-term.

What you might want to do

The SpaceX initial public offering isn't a reason to panic or restructure your portfolio, but it does draw attention to the importance of being aware of what's in your portfolio and just where your money is. This is a good time to check which indexes your funds track and understand whether SpaceX is or may soon be in their investments. Take some time to review your holdings and consider whether you're comfortable with the risk level. That's particularly important if you're closer to or already in retirement, since you might have less tolerance for the volatility that comes with a newly public company that isn't yet profitable.

Bottom line

Navigating the stock market isn't simple, so if you're concerned about SpaceX stock or have questions about your investments, consult with a financial advisor. A trusted professional should be able to answer any questions you might have, address your fears, and help you find solutions that work for you.

Taking the time to review your portfolio with a financial advisor is always a good idea, and it may help ensure that you're on track for retirement.