Passive investors face a new dilemma after Space X joined many indices. When a company as high‑profile as Elon Musk’s venture lands in an index, fund managers must decide whether to include it or wait. The choice hinges on whether the goal is to mirror the entire market or just its core.

Vanguard’s Total Stock Market ETF now tracks an index that will add Space X within days of its debut, while the S&P 500 lags behind, requiring several months and profitability checks. This split means some ETFs expose investors to the hype of a fresh IPO, whereas others screen it out until the market stabilises.

For most passive players, the difference may prove negligible, as broad funds keep costs low and track large universes. Still, the decision signals a broader debate over whether to chase every new listing or to filter for proven performance. Ultimately, the choice shapes exposure to the next wave of tech disruptors.

Investors eyeing the S&P 500 may prefer the index’s stricter entry rules, which historically curb volatility from hot launches. Those leaning toward the Total Market ETF favour breadth, accepting that early inclusion of Space X could tilt the portfolio slightly higher in the short term. The choice ultimately reflects individual risk tolerance and investment horizon.