You people are nothing but whores. You can dress it up in some kind of utopian futurism but no one with a brain buys it.

The index is float adjusted so its initial weight in the index will be relatively low.

https://global.morningstar.com/en-ca/stocks/how-will-mega-ip...

They changed their minimum float rule for these mega IPOs with low float.

401ks and pension funds have large amounts of money in index funds.

Major indexes like VTI will buy SpaceX after a waiting period as long as it satisfies other rules (and there have been some rule changes in various indexes to make something with low float like SpaceX eligible for inclusion).

However, most indexes are float-adjusted, meaning that they will adjust the amount of shares of a company in the index based on their float, not their total shares. So, they will initially pick up small amount of weight/shares around the IPO.

The NASDAQ-100 has been bending over backwards to cater to SpaceX, which makes some sense because they want it listed on their exchange. They changed their inclusion rules to include a fast-track for IPOs. This type of mechanism isn't uncommon in other large indexes (VTI has had fast-track rules for a long time) but the timing does make it appear that they changed their rules for SpaceX.

Other providers have made changes to float requirements for inclusion.

The NASDAQ-100 (QQQ being the popular ETF tracking it) is also not float adjusted and, instead, has some capping rules for low-float securities. I haven't done any projections but it seems that NASDAQ-100/QQQ will pickup more shares than the float-adjusted indexes.

I just wish they weren’t so obstinate about people installing from other sources without signing/notarization. I understand it from a security standpoint but it’s also nakedly self-serving.

I’m glad that they’re fine with signing in this case.

A lot of people have been using it to passively invest in AI (via QQQ).

It’s nonsensical for a variety of reasons but we live an era of the stock market just being another casino…

I'd like to know how the CRSP/Morningstar folks feel about the interesting lock-up period rules that Elon has inserted into the SpaceX IPO and how that jives with their analysis.

The float requirement changes are directly due to these huge IPOs only placing small amounts of float on the market. Their goal seems to be tracking the market and making this change prevents them from excluding two notable companies from their indexes.

IIRC CRSP indexes are float-weighted so they aren't going to attempt buying a ton of these IPOs anyway due to that low float.

Again. Would I have made the change? No because placing that little float on the market isn't kosher IMO.

It makes sense. They intend to track the market as it is.

Though, you can definitely make the case that the popularization of index funds has allowed their holders to essentially become patsies to hype IPOs.