SpaceX will be added to the tech-heavy Nasdaq 100 index on July 7, exchange operator Nasdaq confirmed, an event that will force large index funds such as the Invesco QQQ ETF, which tracks that index, to buy its shares. Shares of SpaceX rose a marginal 0.15% on Friday ahead of its inclusion in Russell indexes, with passively managed funds tracking those benchmarks required to add billions of dollars' worth of Elon Musk's internet and rocket company to their holdings. Traders exchanged about $19 billion worth of SpaceX shares, with almost half of that turnover in the final minutes of the session.
Investors buy mutual funds and ETFs, such as Invesco's QQQ and QQQM, that track the Nasdaq 100, to get broader exposure. J.P. Morgan estimated that SpaceX's inclusion in the Nasdaq 100 could draw $4.3 billion in passive inflows.
