Burton G. Malkiel, author of *A Random Walk Down Wall Street*, warns 401(k) investors that index funds will soon own SpaceX after Nasdaq’s rule change permits the rocket maker’s inclusion following its May IPO. The move forces millions of retirement savers into a company valued at roughly $2.1 trillion, despite lingering concerns about its dual‑class share structure and Musk’s unchecked control.

Malkiel argues that abandoning indexing because of concentration risk would be a mistake; historically, broad market exposure has delivered about 10% annual returns, while over 90% of active managers underperform over long horizons. He notes that AI‑related stocks now account for nearly half of market‑cap weight, meaning a sharp correction could drag index values lower and could erode retirement balances, for many savers.

For investors uneasy with Musk’s empire, Malkiel suggests shifting to low‑cost ESG or value‑oriented funds, checking holdings, maintaining diversification, and keeping expense ratios below 0.05%. While such moves may curb exposure to high‑flying tech, they likely sacrifice some upside compared with the total market. The bottom line: stay diversified, keep fees minimal, and accept the inevitable market tilt toward AI.