As SpaceX joins the Nasdaq-100, its stock could show up in your 401(k). Here’s what to know
Kerry Hannon· Senior Columnist
Updated Tue, July 7, 2026 at 10:45 PM GMT+5:30
5 min read
SpaceX joins the Nasdaq-100 on Tuesday, which means mutual and exchange-traded funds that track the index will buy the company’s shares
Many such funds are held by passive investors saving for retirement. So if you have a 401(k), your retirement savings will likely be invested in SpaceX sooner or later, and that has many savers feeling squeamish
The rocket company’s stock has been volatile since its public market debut, surging to heady highs from the June 12 opening price of $150 before sinking and then rising again. It closed at $160.42 on Monday
(SPCX)
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149.47-10.95(-6.83%)
At close: July 7 at 4:00:01 PM EDT
Those ups and downs aren’t uncommon following major IPOs. Think Lyft (LYFT), Coinbase (COIN), Robinhood (HOOD), and Ri, which all saw major 12-month slides after going public, according to Truist chief investment officer Keith Lerner, who studied 30 of the last major IPOs
Facebook (now Meta (META)) shares dropped 32% in the first year of trading, while the S&P 500 Index climbed 10% during that same time
What’s different here is that this stock has an immediate impact for millions of retirement savers who invest in a 401(k)ock
Due to the easing of rules that kept unprofitable firms with no track record out of index funds, SpaceX became eligible for inclusion just 15 trading days after its IPO
The Nasdaq 100 (^NDX) index and the Russell 1000 (^RUI) changed their rules to accommodate mega IPOs like SpaceX into their flagship indexes within the first few days of trading
As a result, 401(k)s and other retirement accounts will have exposure to SpaceX — mostly through index and total market funds, including those that track the Nasdaq-100
As a refresher, index funds are designed to track the performance of a specific market benchmark. They passively buy and hold securities in the same proportions as the index they follow
So, any investor who owns shares in these funds will likely own SpaceX in their employer-provided plans. To be clear, most 401(k) exposure is small for now
If you’re worried about the stock’s volatility impacting your savings, there are things you can do to manage that uncertainty
Look to the future
Remember that you’re investing for the long haul in a 401(k).
“You are picking strategies, not stocks,” Robert Persichitte, a financial planner based in Arvada, Colo., said. “If that strategy includes SpaceX, it might still be appropriate, even if you don’t like individual stocks in that strategy.”
Keep it in context
While SpaceX is a massive company, the publicly available shares are minimal, so its impact on a well-diversified broad-market index is limited, especially in the short run.
