Sell S&P 500 Index Funds or Submit to Forced Purchase of SpaceX?
u/mdn845 ·
Reddit — r/ValueInvesting
· May 23, 2026 at 20:25
· ⬆ 16 pts
· 💬 30 comments
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AI Summary
Summary
The author is concerned that SpaceX’s upcoming IPO and rule changes allowing its rapid inclusion in the S&P 500 will force index fund holders (like VOO) to buy overvalued shares, risking a bag-holding scenario.
Thesis: Current S&P 500 index investors may face a forced purchase of SpaceX at an inflated valuation because private investors have a 6-month lockup, creating potential downside for the broader index.
Quality assessment: Speculation based on a YouTube video; lacks specific data on SpaceX’s valuation, lockup mechanics, or S&P committee rules. Not well-researched DD – more of a fear-driven question.
Score16
Comments30
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So, I watched Patrick Boyle’s latest video. Very entertaining, but it presents a dilemma for me.
I have a fair chunk of my investments in VOO. SpaceX is going public in June & it appears the rules are being changed to allow it to be added to the S&P 500 index after only 6 months.
Couple that with the fact that current private investors in SpaceX won’t be able to sell for 6 months & it means owners of S&P 500 index funds are potential bag holders when the market decides SpaceX isn’t worth its insane valuation.
So, what to do? Dollar cost average out of some or all of my VOO in favor of something else? Or just bear the risk of SpaceX?