Unless you've been living off-grid for the past 48 hours, you've probably heard the news: SpaceX went public on June 12, 2026. The stock hit the Nasdaq under ticker SPCX and instantly became the largest IPO in US history — raising $75 billion on day one. (For context, the previous record was Alibaba back in 2014 at $22 billion. SpaceX nearly tripled it.)
Your group chat is probably on fire right now. Your coworker is already claiming they "got in early." And you're sitting here wondering: Should I be buying SPCX?
Let's slow down and actually think this through — because the answer isn't as simple as the hype would have you believe.
Look, SpaceX is genuinely extraordinary. This isn't a meme stock or a startup burning cash on a dream. The company brought in $18.67 billion in revenue in 2025 — a 33% jump from $14.1 billion the year before. It operates reusable rockets at scale, has a growing satellite internet business (Starlink), and is a key contractor for NASA and the US government.
The excitement around this IPO isn't irrational. SpaceX is a real company with real technology that's changing real industries.
So yes — the enthusiasm is understandable. But enthusiasm and good investing decisions are two different things.
The IPO opened at $135/share and closed day one at $160.95 — a 19.22% single-day pop. That number is all over social media. People are calling it free money they missed out on.
Here's the thing: that 19% didn't go to you.
It went to institutional investors — hedge funds, pension funds, and big banks — who got shares at the $135 offering price. By the time you or I could buy on the open market, the stock was already trading near $160. The average retail investor who bought on day one saw approximately 0% return on the first day. That's just how IPOs work.
There was $250+ billion in demand for this IPO (the offering was 3.3 to 4 times oversubscribed). Only 20% of available shares were allocated to retail platforms like Fidelity, Robinhood, and Charles Schwab. The big players ate first. Retail got the scraps — and paid a premium for them.
Now let's talk valuation. At the day-one close price of $160.95, SpaceX carried a market cap of approximately $2.1 trillion. That makes it one of the most valuable companies on Earth — on day one of being public.
Morningstar's fair value estimate for SPCX sits approximately 55% below the IPO price.
Read that again. One of the most respected investment research firms in the world thinks this stock is roughly half of what people are currently paying for it.
Oh — and SpaceX posted a $4.28 billion net loss in Q1 2026 alone, with an accumulated deficit of $41.3 billion. The company is growing fast, yes. But it is burning serious cash.
Josef Schuster, founder of IPOX Schuster (a firm that literally specializes in IPO investing), put it plainly:
"I think investors really need to be careful of jumping in at this point. However, down the road, once it starts trading, I think, let it trade and see."
That's an IPO expert telling you to wait. That's the move.
If you've read our post What Is an Index Fund?, you already know the foundation. If not, here's the short version: an index fund like VOO (Vanguard S&P 500 ETF) gives you a slice of the 500 largest US companies in a single investment. Low cost. Diversified. Historically reliable.
Here's what that looks like in numbers:
Index funds don't make for exciting dinner conversation. But they build wealth quietly and consistently — and that's the whole point.
Here's an honest comparison of what you're actually evaluating:
| S&P 500 Index Fund (VOO) | SPCX (SpaceX) | |
|---|---|---|
| What you own | 500 of the largest US companies | 1 company |
| Expense ratio | 0.03%/year | N/A (stock) |
| Historical avg return | ~10%/year | No track record (just IPO'd) |
| Profitability | Portfolio is profitable overall | $4.28B net loss in Q1 2026 |
| Morningstar valuation | Fairly valued | ~55% overvalued vs. fair value estimate |
| Volatility | Moderate, recovers historically | High — IPO-stage company |
| Risk level | Diversified, lower risk | Concentrated, higher risk |
| Barrier to entry | ~$530/share (or $1 with fractional shares) | ~$160/share as of day-one close |
| Dividends | Minimal (reinvested in most funds) | None |
| Suitable for | Core portfolio foundation | Small, speculative allocation only |
The table doesn't lie. SPCX has massive upside potential — but it comes with massive uncertainty attached. Your index fund is your foundation. SPCX, at best, is a topping.
You might assume that if SpaceX is now publicly traded, your index fund will automatically scoop it up and give you exposure anyway. Not so fast.
The S&P 500 has a standard 12-month profitability waiting period for new listings. The committee has already denied early inclusion for SPCX. That means if you hold VOO, SPY, or IVV, you will NOT own a single share of SpaceX for at least a year — likely until mid-2027 or later.
If you want SpaceX exposure through an index sooner, the Nasdaq-100 (QQQ) is the faster route. SpaceX apparently made fast-track Nasdaq-100 inclusion a condition of listing on the Nasdaq — so QQQ investors may get exposure much sooner than S&P 500 holders.
The Russell 1000 also now includes SpaceX.
So if you hold QQQ and you're patient, you may get some indirect exposure without doing anything. That's actually a pretty elegant outcome for passive investors.
If you want broader space-sector exposure beyond SpaceX specifically, the Tema ETFs NASA fund (ticker: NASA) offers diversified exposure to the space economy — without betting everything on a single stock's post-IPO volatility.
Okay. You've read the cautionary numbers. You understand the valuation concern. You know the S&P 500 won't touch it for a year.
And you still want some SPCX.
Fine. That's your call to make — and it's not a crazy one if you do it right. SpaceX could be a generational company. Nobody knows for sure. But if you're going to buy in, don't lump-sum into a freshly-IPO'd stock at a $2.1 trillion valuation.
Here's the strategy: Dollar Cost Averaging (DCA).
DCA means you invest a fixed dollar amount on a regular schedule — regardless of price. Instead of buying $3,000 of SPCX today at IPO-high prices, you might invest $150/month over 20 months. When the price is high, you buy fewer shares. When the price drops, you automatically buy more. Over time, your average cost per share smooths out.
How to DCA into SPCX practically:
Wait 3–6 months. Let the initial IPO hype and volatility settle. IPO stocks are notorious for wild swings in the first few months. Options trading on SPCX began June 16 — that increases volatility further, at least short-term.
Decide your max allocation. As a general rule, no single stock should represent more than 5–10% of your total investment portfolio. This is your ceiling — not your starting point.
Set a fixed monthly amount. Pick a number that fits your budget — $50, $100, $200. Set up a recurring purchase through Fidelity, Robinhood, or Charles Schwab.
Don't watch the daily price. Seriously. Check in quarterly. DCA only works if you don't panic out on the dips or get greedy on the spikes.
Keep your index fund contributions going. This is non-negotiable. Your SPCX position is a satellite to your core index fund strategy — not a replacement for it.
Here's the honest truth: most people asking "should I buy SPCX?" don't have a fully-funded emergency fund and consistent index fund contributions already locked in. If that's you — don't let the SpaceX hype distract you.
Get your financial foundation right first:
Then consider whether SPCX deserves a small slice of your portfolio.
SpaceX is exciting. The company might genuinely change civilization. But even the greatest companies in history have made lousy investments when bought at the wrong price — and right now, the price is very hype-driven.
The boring path — index funds plus patience — wins over and over again. The data says so.
This week: Keep your index fund contributions going. Don't adjust your strategy based on IPO hype.
Set a calendar reminder for 3–6 months from today (September–December 2026) to revisit SPCX. By then, the IPO excitement will have faded, the stock will have found a more realistic trading range, and you'll be making a decision with actual price history to look at — not just day-one euphoria.
If you want in on SpaceX at that point:
And if you hold QQQ, check in — you may get SpaceX exposure through your existing portfolio sooner than you think.
💬 Thinking about SPCX? Drop your questions in the comments — we'll break it down.
Disclaimer: This content is for educational purposes only and is not personalized financial advice. All investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.
Let us know so we can keep writing what actually moves the needle for you.
Treasury activation emails started June 14. The $1,000 seed deposits land July 4. Here's the step-by-step activation guide, contribution rules, and Trump Account vs. 529 comparison.
The official Trump Accounts app launched today on Apple and Google Play. If you have a child under 18, the federal government is offering a free $1,000 seed deposit. Here's everything you need to know and how to claim it before July 4, 2026.
You've heard the term. You've nodded along. Here's what an index fund actually is, why a 1% fee costs you over $100,000, and the exact fund to buy when you're ready to start.