SpaceX's Nasdaq 100 weighting set to rise to 2.82% in quarterly rebalance: Bloomberg

According to Bloomberg, which cited data from the index provider, SpaceX's share of the Nasdaq 100 will climb to 2.82%—more than twice its current level—when the benchmark's quarterly rebalance goes into effect Monday.

Using Friday's closing prices, the change validates a preliminary weighting and represents an early move toward matching the space-and-satellite giant's index sway with its huge market value.

SpaceX, which listed publicly in July, currently has a fairly small 1.28% weighting in the gauge. Following the listing, most of its shares were locked up, which limited its index presence even after Nasdaq amended its rules to permit recently listed mega-caps to enter the index earlier and without a 10% free-float minimum.

The rebalance helps address an odd discrepancy: SpaceX stands as the seventh-biggest company in the Nasdaq 100 by market value, exceeding $2 trillion, but its existing percentage weight does not put it in the top 20 constituents.

Passive funds face mechanical buying

The steep rise in index weight will push passive funds and exchange-traded funds (ETFs) that track the benchmark to rework their holdings and purchase billions of dollars of SpaceX stock so they can maintain proper tracking accuracy.

Key funds affected by the rebalance include:

Invesco QQQ Trust Series 1 (QQQ): The $482 billion fund ranks among the largest ETFs globally that track the Nasdaq 100.

Global Benchmark Products: More than 200 investment products track the Nasdaq 100, with global assets under management exceeding $800 billion.

The Nasdaq 100 tracks the 100 biggest non-financial companies listed on the Nasdaq exchange. Inclusion has no minimum market-capitalization requirement, but companies must keep an average daily volume of at least 200,000 shares, among other liquidity criteria.