How Is SpaceX (SPCX) Already the Largest of 3,372 Holdings in This $97.7 Billion Vanguard ETF?

After weeks of waiting, concern absorption steadfast Vanguard yet updated the holdings of its 48 passively managed equity exchange-traded funds (ETFs).

Unsurprisingly, Space Exploration Technologies (NASDAQ: SPCX) popped up successful the Vanguard Total Stock Market ETF, the Vanguard Growth ETF, and the Vanguard Mega Cap Growth ETF, among others.

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By acold the biggest astonishment was that, arsenic of June 30, SpaceX is the No. 1 holding successful the Vanguard Extended Market ETF (NYSEMKT: VXF), up of 3,371 different stocks.

This is nary tiny ETF by immoderate means -- the Vanguard Extended Market ETF has $97.7 cardinal successful nett assets and traces its inception day backmost to December 2001.

Here's wherefore SpaceX is present the apical holding of the Vanguard Extended Market ETF and however it compares to the different Vanguard ETFs that bought SpaceX successful June.

SpaceX is making waves successful the ETF satellite

The Vanguard Extended Market ETF's 6,775,494 shares of SpaceX were valued astatine $1.158 cardinal arsenic of June 30. The money includes a blend of small- and mid-cap stocks, with a fewer ample caps sprinkled in. So you whitethorn beryllium wondering wherefore a banal similar SpaceX is successful the ETF, fixed it has a $1.63 trillion marketplace headdress and is 1 of the 10 largest U.S. companies by marketplace cap.

SpaceX's archetypal nationalist offering was the largest successful past based connected SpaceX's valuation. But SpaceX raised conscionable $75 cardinal by selling 555 cardinal shares astatine $135 each and different $10.7 cardinal from underwriters with options to bargain further shares -- acold little than its valuation. So the fig of shares disposable for nationalist trading connected the Nasdaq -- known arsenic the interval -- is lone astir 5% of SpaceX's full shares outstanding.

Because SpaceX's interval is specified a tiny percent of its marketplace cap, the rules-based S&P 500 Completion Index that the Vanguard Extended Market ETF is modeled aft astir apt classified SpaceX arsenic thing different than a megacap stock. This is wherefore SpaceX was pole-vaulted to the fund's apical holding successful a substance of weeks.

These aforesaid marketplace dynamics are wherefore SpaceX makes up specified a tiny percent of funds similar the Vanguard Growth ETF. If SpaceX were weighted by marketplace cap, it would person a weighting akin to Meta Platforms astatine astir 3.4%. Instead, SpaceX is conscionable 0.29% of the fund, weighted by a aggregate of its interval alternatively than marketplace cap.