Key insights
- The S&P Dow Jones Indices will not fast-track AI-linked IPOs like SpaceX into the S&P 500, delaying their inclusion for at least a year. However, the ERShares Private-Public Crossover ETF (XOVR) offers early investors exposure to SpaceX through a special purpose vehicle, which currently constitutes 23% of the fund. This provides an alternative route for those seeking to invest in SpaceX before its anticipated IPO, suggesting continued investor interest despite the index exclusion.
In an unexpected twist, S&P Dow Jones Indices, the overseer of the S&P 500 (^GSPC 2.64%), announced that it won't fast-track any of the big artificial intelligence (AI)-linked initial public offerings (IPOs) into the index. That means SpaceX, OpenAI, and Anthropic will have to wait at least a year before inclusion.
But just because mega-IPOs like SpaceX won't get early access to S&P 500-linked investors doesn't mean the enthusiasm for the stock is diminished, or that early access in other ways isn't on their minds. Investors hoping to take a position in SpaceX prior to the expected June 12 IPO actually have an easier time than they might think.
One way is to buy shares of the ERShares Private-Public Crossover ETF (XOVR 4.25%). It takes positions in innovative public and late-stage privately held companies. The fund's largest position right now is through special purpose vehicle (SPV) exposure to SpaceX. This SpaceX SPV position is currently 23% of the entire portfolio.
A couple of things to keep in mind:
For investors looking to own a piece of SpaceX prior to its IPO, this is still a great early way in.