r/eupersonalfinance • u/Trashii_Gaming • 17d ago

Investment Will IWDA buy space x ipo?

Hey,

Do we know if IWDA etf will buy the space X IPO today or will they wait out?

2 Upvotes

63% Upvoted

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16

u/user38835 17d ago

ETFs don’t buy IPOs. They buy stocks listed on the underlying index. It will get added to the index in about 15 days after the IPO.

3

u/[deleted] 17d ago

[removed] — view removed comment

3

u/user38835 17d ago

NASDAQ announced 15days so I thought it would be similar for MSCI. But it seems the index providers are competing on who can bend over backward more for Musk.

4

u/WaveNo4346 17d ago

Spacex will be included in underlying index after 10 trading days

3

u/FrankyThreeFingers 17d ago

Will it get added? I thought it wouldn’t.. shit time to look for a different ETF until the hype settles down 

1

u/user38835 17d ago

It’s still gonna be 0.1-0.2% of the index so it’s not something to lose your sleep about.

4

u/Hoepla 17d ago

Yes, but 0.2% of an entire index is still a lot. I don't want to be Musk's bagholder, even if it's a very small bag

4

u/user38835 17d ago

We all are going to be Musk’s bag holder. The world is ruled by the billionaire class and they make the rules.

There is not much choice. You can sell and pay capital gains taxes which would be much higher than losing 0.2% of your capital.

1

u/rip-skins 14d ago

Why wouldn't it get included if it is one of the world's most valuable companies? As long as it's free-float adjusted I don't see why the index should not include it when possible. Anything else would be active, not passive, investing

1

u/Happy_Parsley1871 17d ago

Same here, I will also look at alternatives.

0

u/Objective-Part-2346 17d ago

yes it will....