SpaceX in your index fund, explained

The article uses the prospect of SpaceX entering the Nasdaq-100 to explain how index funds work and why they are considered safer than stock picking. It questions whether a highly valued, speculative company could create risks for investors who hold Nasdaq-100-linked funds through retirement accounts or broad market products.

The concern highlights a growing tension in passive investing: index inclusion can force millions of investors to own companies they might otherwise avoid. As private tech giants pursue enormous IPOs, benchmark rules and concentration risk may matter more to ordinary savers than individual company hype.