Going to burst everyone’s bubble this morning because a lot of people struggle with the math.
If and when
$SPCX gets included in
$QQQ, the allocation is likely to be around 0.6% to 0.7% based on the current float assumptions. That means a $100,000 investment in QQQ would have only about $600 to $700 of exposure to SpaceX.
The key point: float still matters. Even though Nasdaq lowered the float requirement for eligibility, the weighting is still driven by float-adjusted market capitalization.
I saw someone claim that QQQ would need to buy $34 billion of SpaceX. 😂 At a 0.7% weighting, that would imply a QQQ asset base of roughly $4.9 trillion—far larger than reality.
The takeaway is simple: don’t confuse headline valuation with index weighting. A company can be worth trillions on paper, but if only a small percentage of shares are in the public float, its weight in an index can still be relatively modest.