Zachary Evens: Over 200 ETFs listed in the United States now own shares of SpaceX SPCX, but few own very much of the newly public space and AI firm. Many portfolios are natural landing places for the stock, but several are head-scratchers considering the stock’s high-growth characteristics and negative net earnings. For example, it’s owned by several value-oriented index ETFs and even some income-oriented ETFs. But as expected, SpaceX is most commonly found in growth-oriented ETFs and total market index ETFs.
SpaceX’s inclusion in prominent indexes spurred much debate, but an allocation to the stock does not make an ETF inherently good or bad. For index ETFs, it’s more about accurately representing a market segment and minimizing costs for investors. The Morningstar Medalist Rating for index funds doesn’t heavily weigh the presence of any single stock since their portfolios can stretch across hundreds or thousands of companies. Observing what types of stocks an index ETF holds is more revealing than assessing the individual merits of each firm.
Despite Morningstar’s dim view of its current valuation, many highly rated index ETFs can and do hold shares of SpaceX. Here, I’ll highlight three of those tickers, all of which earn Gold Morningstar Medalist Ratings.
3 Great ETFs That Hold SpaceX
First up is iShares Russell 1000 Growth ETF, which trades under the ticker IWF and charges 18 basis points annually. It tracks the Russell 1000 Growth Index and is a strong choice for investors who want to tilt toward the fastest growers in the market. SpaceX makes the cut, but its currently low float places the stock far down the order. The index starts with the largest 1,000 stocks in the US and sorts them by growth characteristics like sales and earnings growth. Companies scoring favorably on these and other metrics are swept into this portfolio and are weighted by their float-adjusted market cap. That process delivers heavy exposure to mega-cap tech names, which have powered the fund’s performance in recent years. Dependence on the market’s largest companies is not unique to this ETF. It’s common across the large-growth category, and approximating this segment with a low fee should give the ETF an edge.
Next up is Schwab U.S. Large-Cap ETF, ticker SCHX. This ETF tracks the Dow Jones U.S. Large-Cap Total Stock Market Index and comes with an annual fee of just 3 basis points. The index captures the top 750 US companies by market cap and weights them accordingly. Market-cap-weighting roughly the top 90% of the US stock market means that the ETF accurately represents the large-blend segment and earns it a High Process Pillar rating. Like most category peers, technology stocks are in the highest weighting at over a third of the portfolio. In contrast, basic materials, real estate, and utilities stocks barely make a dent. SpaceX also barely makes a dent. Its tiny weight is reflective of its currently tiny float, but as its float grows, its share in the portfolio will also grow. However, it has a long way to go before approaching the size of Nvidia NVDA, Apple AAPL, Microsoft MSFT, and Alphabet GOOGL, the ETF’s four largest holdings.
Last but not least is Invesco MSCI USA ETF, ticker PBUS. It tracks the MSCI USA Index and charges 4 basis points annually. The index is weighted by market cap and captures roughly the top 85% of the US market across large- and mid-cap stocks. This gives the portfolio a slightly broader footprint than a pure large-cap index. The top of its portfolio looks almost identical to the Schwab ETF just mentioned, which means that it too accurately represents the large-blend segment and holds a very small position in SpaceX. Overall, its broad portfolio coupled with a low fee should deliver a durable advantage over most peers.
Don’t overthink the inclusion of any one stock in an index. Most of the time, its inclusion is simply a byproduct of index rules, and most new joiners barely make a dent. That has been true for SpaceX. Much was made over indexes accommodating the Elon Musk company, but it has yet to become a meaningful piece of notable indexes and remains relegated far down the order in all three of these great ETFs.
Watch 3 Great ETFs for Rebalancing Your Portfolio in 2026 for more from Zachary Evens.
