SpaceX’s (NASDAQ: SPCE) weighting in the Nasdaq 100 Index will surge from 1.28% to 2.82% when the benchmark’s quarterly rebalance takes effect on Monday.
Bloomberg reported the adjustment, citing data from the index provider, with the new weighting calculated using Friday’s closing prices.
The change confirms a provisional weighting that will begin to align the space and satellite giant’s influence in the index with its enormous market valuation.
SpaceX made its public debut in July, and most of its shares were locked up following the listing, which constrained its index representation despite its massive size.
Nasdaq revised its rules to allow newly listed mega-cap companies to enter the index sooner, removing the previous requirement for a 10% free-float minimum.
SpaceX is the seventh-largest company in the Nasdaq 100 by market value, at more than $2 trillion, yet its current weighting does not place it in the top 20 by percentage weight within the gauge.
SpaceX’s first lockup expiration came in August, coinciding with its first earnings release as a public company, prompting concern that a surge in newly tradable shares could overwhelm demand.
The anticipated selloff never materialized, even after a second lockup expired a week later, as insiders largely held onto their stakes and the stock remained resilient.
A larger weighting carries significant consequences for passive funds tied to the benchmark, which are required to adjust their holdings in proportion to any index changes.
Those funds include the $482 billion Invesco QQQ Trust Series 1, known as QQQ, one of the largest exchange-traded funds in the world.
More than 200 investment products track the Nasdaq 100, representing over $800 billion in assets under management globally, amplifying the real-world impact of any rebalancing.
The Nasdaq 100 tracks the largest non-financial companies listed on the Nasdaq Stock Market, with no minimum market capitalization required for inclusion, though companies must maintain average daily trading volume of at least 200,000 shares.
