Read – https://www.themadisonpartners.com/7-things-retirees-need-to-know-spacex-in-401k/
SpaceX has been added quickly to several major stock indexes (Nasdaq-100, FTSE Russell, CRSP total‑market, some global indexes).
Those Index funds track SpaceX benchmarks with auto biluy-ins. Those buy-ins include 401(k)s, IRAs, and pension plans.
This means retirement account holds certain index or target‑date funds. This could allow many pensions to own a small slice of SpaceX even if you never chose it by name.
The Risk
The concerns are that index rules were loosened to fast‑track SpaceX. This allowed billions from pension funds to be funneled into SpaceX to meet requirements. Due to this added funding, some feel the company is overpriced. If the company has a tech‑sector downturn, it could drag down retirement funds more than usual, like a mini‑bubble burst.
Read – https://www.sfchronicle.com/personal-finance/article/spacex-ipo-401k-pension-stock-22296327.php
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