Space Exploration Technologies Corp’s (NASDAQ:SPCX) record-breaking rise from IPO to the Nasdaq-100 in just 15 trading sessions may be remembered for more than its historic index inclusion. It could also accelerate a new race among active ETF managers to gain exposure to late-stage private companies before they go public.
The milestone highlights a growing divide between active crossover funds and passive index ETFs. While index funds only began accumulating SpaceX after it became eligible for inclusion, funds that invested before the IPO captured years of private-market value creation.
“It’s a turning point, without question,” Joel Shulman, founder and chief investment officer of ERShares, told Benzinga. “We were first. ERShares Private-Public Crossover ETF (NASDAQ:XOVR) added SpaceX on Aug 24, 2024, and it took roughly a year before others followed. We have continued to be the market leader in the crossover space… this is still the first inning of the trend.”
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