Retirement savers may own SpaceX — or soon will — and not even know it
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- FMR, the parent of Fidelity Investments, holds 0.98% of outstanding SpaceX shares across 46 Fidelity funds, according to S&P data, after SpaceX gained more than 30% since its public debut on the Nasdaq last Friday.
- Baron Capital Group owns 0.21% of SpaceX shares across seven funds, while Franklin Resources, BlackRock, and Neuberger Berman also hold SpaceX positions in several funds, per S&P.
- Eight active funds — mutual funds, ETFs, and closed-end funds — hold SpaceX positions exceeding 10% of their net asset value, including four Baron funds where the stock accounts for 20% or more of assets, per Morningstar.
- SpaceX will enter the Russell 1000 as soon as Thursday after market close (five trading days) and the Nasdaq-100 on July 6 (15 trading days), pulling the stock into index funds and ETFs commonly found in 401(k) plans.
- Because SpaceX listed with a small public float, experts say its initial weight in benchmark indexes will be modest — "one of many, many, many stocks in the ETF," per Ellevest CEO Sylvia Kwan.
- BlackRock's Jaime Magyera said SpaceX "will gradually make its way into index funds that are likely in their 401(k) plans," urging savers to "look under the hood" at fund holdings and assess whether the allocation matches their risk tolerance.
Why it matters: Millions of 401(k) savers will become indirect SpaceX shareholders as the stock enters the Russell 1000 this week and the Nasdaq-100 on July 6, with eight active funds already carrying positions above 10% of their assets. Experts say the first step for retirement savers is simply knowing the exposure is there and deciding whether that concentration matches their risk tolerance.
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