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

Odaily reports that as SpaceX is set to be included in several major index systems, passive investors may be forced to hold the stock, thereby bearing significantly increased portfolio volatility risks. Multiple index providers (including CRSP, Nasdaq, FTSE Russell, and MSCI) have already adjusted their rules to accommodate SpaceX's inclusion in large-cap indices.

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

However, some believe that as SpaceX enters the index system, sustained passive fund inflows and market-making mechanisms could reduce its extreme volatility over the medium to long term and enhance liquidity stability. (CNBC)