SpaceX attracted an estimated $47.5 billion in fund inflows following its inclusion in the Nasdaq-100 index on the 7th (local time), according to analysis by Shinhan Investment & Securities and Bloomberg. The influx comprised $25 billion from active funds accumulated around the company's initial public offering and an additional estimated $22.5 billion from passive index-tracking funds triggered by the Nasdaq-100 entry. Despite becoming a liquidity magnet in the market, SpaceX stock closed at $149.29 on its first day in the index, below the $150 opening price recorded on its listing day the 12th of last month. The inclusion followed Nasdaq's newly introduced 'Fast Entry' rule for large IPOs, which allowed SpaceX to enter the benchmark index just 15 trading days after its listing.
SpaceX Attracts $47.5 Billion Across Active and Passive Funds
Active fund purchases of SpaceX shares totaled $25 billion around the company's IPO, according to the Shinhan Investment & Securities and Bloomberg analysis. More than 150 active funds held SpaceX allocations exceeding 1% of their portfolios. SpaceX listed on Nasdaq the 12th of last month.
Passive fund inflows are estimated at an additional $22.5 billion. SpaceX currently represents a 1.34% weighting in Nasdaq passive funds. Applying this percentage to the estimated $1.7 trillion in Nasdaq-100 tracking funds as of early this month yields the $22.5 billion passive inflow figure.
Index Rebalancing Triggers Nasdaq-100 Volatility
Market analysts attribute increased Nasdaq-100 volatility to selling pressure on existing technology stocks as funds rebalance portfolios to accommodate SpaceX. Park Woo-yeol, a researcher at Shinhan Investment & Securities, stated that "because SpaceX is an unprofitable company, index fundamentals are deteriorating" and "rebalancing is occurring in a manner where passive funds are selling all Nasdaq-100 stocks uniformly by 1.3 to 1.4% to purchase SpaceX."
SpaceX Stock Closes Below Listing Day Opening Price
SpaceX shares fell to an intraday low of $145.20 during U.S. trading on the 7th before closing at $149.29. The closing price remained above the IPO price of $135 but fell short of the $150 opening price recorded on the listing day the 12th of last month.
FAQ
What did SpaceX's Nasdaq-100 inclusion attract in fund inflows?
SpaceX attracted an estimated $47.5 billion in total fund inflows following its Nasdaq-100 inclusion on the 7th (local time), comprising $25 billion from active funds and an estimated $22.5 billion from passive index-tracking funds.
Why did SpaceX stock fall below its listing day opening price?
SpaceX closed at $149.29 on the 7th, below the $150 opening price from its listing day the 12th of last month, despite the large fund inflows. Analysts noted that passive funds sold existing Nasdaq-100 stocks uniformly by 1.3 to 1.4% to rebalance portfolios for SpaceX inclusion, contributing to index volatility.
