SpaceX in Your Index Fund: What It Really Means

Index funds are widely considered a safe, diversified investment strategy. Instead of picking individual stocks, they allow you to bet on the overall market. But when a high-risk, high-profile company like SpaceX—often seen as overvalued—is fast-tracked into the Nasdaq-100, does it threaten the stability of index funds? Could a massive IPO worth $1.77 trillion disrupt the retirement savings of ordinary investors who never intended to back Elon Musk's ventures? The answer lies not in SpaceX itself, but in understanding how index funds work, their history, and why they remain resilient even when volatile stocks are added.