Why You Might Already Own a Piece of SpaceX

Major actively managed mutual funds spent years building significant pre-IPO positions in Elon Musk’s company. The Baron Partners Fund currently holds SpaceX at roughly 37% of its total assets, while the Fidelity Contrafund—one of the largest mutual funds in the United States—lists the firm as its fifth-biggest holding. If your 401(k) or brokerage account allocates capital to these funds, you have been riding the company's valuation growth long before the ticker went live on Wall Street.

Passive index funds are poised to follow suit. The Russell 1000 and other major benchmarks can integrate mega-cap stocks within five trading days, effectively forcing massive capital inflows into the stock through ETFs like the iShares Russell 1000. The S&P 500 remains the notable exception to this rapid adoption. Its strict requirement for a full year of profitability creates a significant barrier to entry, a hurdle that took Tesla roughly a decade to clear following its own public debut.