SpaceX may receive a fresh wave of passive buying after the Nasdaq 100 carries out its quarterly rebalance later this month. The company’s stock has recently traded within a narrow range, while its relatively small free float has kept its index weighting at 1.25%, ranking it 19th in the Nasdaq 100. SpaceX has a market capitalization of more than $2 trillion, making it the index’s sixth-largest constituent by market value. Its weighting is expected to rise after the next rebalance. The changes will be announced after Friday’s close and take effect on Sept. 21. More than 1 billion shares have already become unlocked, lifting SpaceX’s free float from less than 10% shortly after its IPO to nearly 30% of total shares outstanding. A report published Tuesday by JPMorgan Securities strategist Min Moon and others estimates that SpaceX could receive a 1.51% weighting after the rebalance. That could result in roughly $12.4 billion in passive net purchases by index funds and exchange-traded funds. Nasdaq said about $1.7 trillion in assets tracked the Nasdaq 100 at the end of the second quarter, including the Invesco QQQ Trust Series 1 ETF, widely known by its QQQ ticker. Advisorperspectives carried the information.
SpaceX could see a new wave of buying after the Nasdaq 100 conducts its quarterly rebalance later this month. The company’s stock has recently traded within a narrow range.
SpaceX weighting may increase
SpaceX currently carries a 1.25% weighting in the Nasdaq 100 and ranks 19th in the index. Its relatively low free float has been linked to lock-up restrictions. By market capitalization, however, SpaceX is valued at more than $2 trillion and ranks as the index’s sixth-largest constituent.
Its weighting is expected to rise after the next rebalance. The adjustment will be announced after Friday’s close and will take effect on Sept. 21. More than 1 billion SpaceX shares have become unlocked, lifting the free float from less than 10% shortly after the IPO to nearly 30% of total shares outstanding.
Estimated passive inflow
A report published Tuesday by JPMorgan Securities strategist Min Moon and others estimated that SpaceX could receive a 1.51% weighting after the rebalance. On that basis, index funds and exchange-traded funds could passively purchase about $12.4 billion of SpaceX stock.
Nasdaq data showed that roughly $1.7 trillion in assets tracked the Nasdaq 100 at the end of the second quarter. The total includes the Invesco QQQ Trust Series 1 exchange-traded fund, widely known by its QQQ ticker. Advisorperspectives carried the information.
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