SpaceX's Weight in Nasdaq 100 Expected to Nearly Double to About 2.82%
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According to preliminary data released late Friday by Nasdaq Global Index Watch, SpaceX's weighting in the Nasdaq-100 Index is expected to rise from approximately 1.28% to about 2.82%. Final weightings will be determined later this month. Wall Street anticipates that this change will trigger billions of dollars in additional buying from index funds and exchange-traded funds tracking the benchmark. SpaceX's currently relatively low weighting dates back to its inclusion in the index in July, when most of the company's shares remained subject to lock-up periods and were not publicly tradable. As these lock-up periods expire, the number of SpaceX shares available for trading is increasing, raising the company's free-float ratio and potentially increasing its index weight. Further adjustments are likely to follow as more SpaceX shares gradually come out of lock-up, potentially pushing up its index weight again, according to Bloomberg.
Source report
According to preliminary data released by Nasdaq Global Index Watch late Friday, SpaceX's weight in the Nasdaq-100 Index is projected to rise from approximately 1.28% to about 2.82%. The final weights will be determined later this month.
Wall Street anticipates that this adjustment will trigger billions of dollars in additional buying from index funds and exchange-traded funds (ETFs) that track the benchmark.
Background on Current Weight
SpaceX's currently relatively low weight dates back to its inclusion in the index in July. At that time, most of the company's shares were still subject to lock-up periods and could not be publicly traded. As a result, even though Nasdaq amended its rules to allow newly listed large companies to be included in the index more quickly—and removed the requirement that at least 10% of shares must be publicly tradable—SpaceX's weight remained constrained.
Impact of Expiring Lock-Up Periods
As these lock-up periods expire, the number of SpaceX shares available for trading is increasing. This raises the company's free-float ratio, which in turn may increase its weight in the Nasdaq-100 Index.
Further Adjustments Expected
Further adjustments are likely to follow. More SpaceX shares will gradually come out of lock-up, potentially pushing up its index weight again.
(Bloomberg)
Source
thsWestern
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SpaceX Nasdaq-100 weighting to double to 2.82% in quarterly rebalance