Investment management firm Vanguard recently updated the holdings of many of its index funds and exchange-traded funds. Brokers from Vaulltier dive into this topic, noting that the Vanguard Total Stock Market ETF (VTI), the second-largest ETF by net assets, now holds 18,738,438 shares of Space Exploration Technologies, worth $3.2 billion as of June 30.

That stake represents 3.4% of the 555 million shares SpaceX sold during its IPO, highlighting just how quickly and aggressively passive index funds moved to build exposure to the newly public company.

Not Every Vanguard Fund Moved This Fast

VTI was actively buying a significant chunk of SpaceX’s available float in June, at prices notably higher than the stock’s current level. By contrast, Vanguard’s largest fund by assets, the Vanguard S&P 500 ETF, won’t begin buying SpaceX shares until the company is formally added to the S&P 500, a milestone unlikely before June 2027 at the earliest.

Remarkably, VTI’s SpaceX position alone is roughly equal in value to the combined SpaceX holdings of eight other Vanguard ETFs that bought shares in June, underscoring just how large and fast-moving this single fund’s purchase was.

A Small Slice of a Massive Fund

Despite the eye-catching $3.2 billion dollar figure, VTI is so enormous that this SpaceX position represents just 0.14% of the entire fund. In fact, there are 109 other stocks carrying a higher weighting in the ETF than SpaceX currently does.

That context matters for investors evaluating how much indirect SpaceX exposure they actually hold through a broad-market fund like VTI, which aims to own virtually the entire U.S. stock market rather than concentrate in any single name.

Some Funds Carry a Much Bigger SpaceX Weighting

Other Vanguard funds already carry a meaningfully higher allocation to SpaceX than the Vanguard Total Stock Market ETF. The Vanguard Communication Services ETF, for example, has SpaceX accounting for about 2.4% of its portfolio, alongside major holdings such as Alphabet, Meta Platforms, and Netflix.

This difference comes down to structure. Sector-focused ETFs like VOX are inherently more concentrated, meaning individual holdings can represent a larger share of total assets. In contrast, broad-market funds like VTI spread exposure across thousands of companies, naturally diluting the impact of any single stock, even one as prominent as SpaceX.

A similar pattern is expected in growth-oriented funds. The Vanguard Growth ETF and Vanguard Mega Cap Growth ETF are both likely to build relatively higher weightings in SpaceX over time, reflecting the company’s strong growth profile and increasing relevance within major indices..

More Buying Is Likely on the Way

The rapid accumulation of SpaceX shares by the Vanguard Total Stock Market ETF occurring less than three weeks after its IPO highlights the powerful role passive index funds play in shaping demand for newly public companies. 

Because these funds are rules-based, they must buy shares as soon as a company meets index inclusion criteria, regardless of valuation or short-term market conditions. This creates immediate, mechanical demand that can significantly influence early trading dynamics.

Looking ahead, this trend is likely to continue as more SpaceX shares become eligible for trading on Nasdaq. 

The pace of additional buying will depend heavily on the lockup period expiration and whether early investors and employees choose to sell their holdings. A key milestone arrives on August 6, when 20% of early-release eligible shares become transferable, potentially increasing liquidity and triggering further index-driven purchases.

This dynamic sets up an important feedback loop: greater share availability enables more index inclusion, which in turn drives incremental demand, reinforcing the influence of passive investing on SpaceX’s post-IPO trajectory.

Choosing Your Own SpaceX Exposure

Investors looking to avoid indirect exposure to SpaceX through rules-based index changes have several straightforward options. Broad funds such as the Vanguard Value ETF and the Vanguard Dividend Appreciation ETF are unlikely to accumulate SpaceX shares, as the company does not currently meet their value or dividend-focused criteria. 

Similarly, non-communications sector funds would naturally sidestep any inclusion tied to sector classification shifts.

On the other hand, investors who want deliberate exposure to SpaceX within a diversified structure may find the Vanguard Communication Services ETF more aligned with that objective. As SpaceX potentially becomes more accessible in public or quasi-public markets, funds in this sector are positioned to increase their allocation over time, offering a passive way to build exposure without holding the stock directly.

Ultimately, the choice comes down to portfolio intent: avoiding unintended concentration versus leaning into thematic exposure tied to emerging space and communications infrastructure.