Officials overseeing the S&P 500 have decided NOT to fast-track the inclusion of SpaceX, Anthropic, and other “megacap” IPOs in its blue-chip index of stocks, according to a statement from S&P Dow Jones Indices.
S&PDJI had considered waiving its standard rules around ownership, profitability, and trading history in order to include the companies. Those rules seek to guarantee that only high-quality companies are included in the S&P, based on their track record of profits and the wide availability of their shares.
But it has held firm. That means it will be a year or more before SpaceX et al are eligible for inclusion in the index that is often favored by people with 401(k)s or other standard retirement saving plans.
But, as the FT points out, Russell, Morningstar and Nasdaq have all changed their rules to include the megacaps. Retail investors seeking to exclude these companies from their portfolios will have to avoid all those indexes and stick with S&P, in other words. While there is a lot of excitement around the SpaceX and Anthropic IPOs, many investors are wary that they are asking for valuations that are far in excess of their underlying businesses (not to mention that SpaceX isn’t profitable).
