Analysis: If SpaceX is Included in Major Indices, Passive Funds May Be Forced to Assume High-Volatility Asset Risks

Odaily Planet Daily News As SpaceX is about to be included in several major index systems, passive investors may be forced to hold the stock, thereby bearing a significantly increased portfolio volatility risk. Multiple index providers (including CRSP, Nasdaq, FTSE Russell, and MSCI) have made rule adjustments to accommodate SpaceX's inclusion in large-cap indices.

Analysis points out that since SpaceX's current implied volatility is close to 120%, approximately three times that of Bitcoin-related ETFs (such as IBIT), it will become one of the most volatile components of the S&P 500 and Nasdaq 100. Industry insiders say that once large ETFs (such as the Vanguard Growth Index Fund) passively include SpaceX exposure, it will significantly raise the overall volatility level of the index, sparking controversy over "passive investors being forced to bear high-risk assets."

However, there is also a view that as it enters the index system, sustained passive fund inflows and market-making mechanisms may reduce its extreme volatility in the medium to long term and enhance liquidity stability. (CNBC)