The prospect of a SpaceX IPO is once again in the spotlight, raising questions about how index funds could profit. If Elon Musk's space company goes public, it would likely be added to major benchmarks like the S&P 500. The cascading effect: trillions of dollars in passive funds tracking those indexes would be forced to buy SpaceX shares at whatever valuation, enriching existing fund holders in a massive, one-time transfer.
For retail investors, holding broad market index funds that already own the world's biggest tech stocks may be a more predictable play than trying to time the IPO. The real windfall may be hidden in plain sight, inside the rules of passive indexing.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.