Key facts
- S&P Dow Jones Indices will maintain existing eligibility rules for the S&P 500.
- Proposals to shorten the IPO seasoning period or waive profitability requirements were rejected.
- SpaceX must meet standard profitability and 12-month seasoning criteria for S&P 500 inclusion.
- Nasdaq and FTSE Russell have recently updated their rules to allow faster entry for large IPOs.
- S&P Dow Jones Indices rejected exceptions for companies based solely on market capitalization.
S&P Dow Jones Indices announced it will maintain its existing eligibility requirements for the S&P 500 index, rejecting proposals that would have allowed mega-cap companies like SpaceX to gain faster entry after going public. The index provider stated that exceptions to financial viability, seasoning, and investable weight factor (IWF) requirements should not be granted solely based on market capitalization. This decision means SpaceX, and potentially other large IPOs like Anthropic and OpenAI, will need to wait at least 12 months after their IPO and meet profitability and minimum public float requirements before being considered for the S&P 500. SpaceX's market debut is expected on June 12, but it currently meets none of the S&P's criteria: a 12-month public trading history, GAAP profitability, and a minimum 10% free float. SpaceX posted a net loss of $4.94 billion in 2025 on revenue of $18.67 billion and has never been profitable, with an estimated free-float of 3%-4%. The company's targeted valuation is $1.75 trillion. J.P. Morgan had estimated that SpaceX could draw about $10 billion in passive inflows upon S&P inclusion. This contrasts with recent rule changes by Nasdaq and FTSE Russell, which allow for quicker inclusion of large companies. Some investors expressed concerns that faster inclusion could expose passive funds to greater volatility, while supporters argue indexes should reflect the market's actual composition. The S&P 500 is the benchmark for U.S. equities with over $20 trillion in assets tracking it, compared to the Nasdaq 100's $1.4 trillion.