Short spacex is the only answer I've heard but I'm wise enough to know I don't have the mentality for derivatives.
The biggest issues are the effort and tax implications of balancing the SpaceX short.
It was proven to be a good strategy on the SP500 [1, 2]
With 500 companies, it's work. But you can probably approximate it with a top 100.
[1] https://rodneywhitecenter.wharton.upenn.edu/wp-content/uploa...
[2] https://www.tandfonline.com/doi/full/10.1080/0015198X.2023.2...
Many people say you should stay invested in the SP500 anyway and I won't argue against that. But funds like VTV, DGRO, VIG, SCHD etc don't have the same level of exposure to tech, as well as international funds like VEA. Many 401ks allow you to invest in them through brokerage "link" options. Of course, do your research or talk to a pro before considering these.
Aside, I think many people forget to account for their own job/career when thinking about diversification.
Just working "in tech" means that industry is already an oversized part of my financial future by default, even before talking about investment stuff.
VVIAX (Vanguard) or FLCOX (Fidelity)
to reduce your exposure to the highest of high-flying stocks.
Of course, many small company 401Ks limit your investment options to a small family of high expense ratio funds...
https://indexes.nasdaqomx.com/docs/2026_May_NDX_Changes_FAQ....
Q: What is the purpose of modifying the liquidity and seasoning requirements? Could this change result in the inclusion of illiquid securities in the index?
A: Most indexes require a liquidity threshold for new constituents, often as a minimum share count or average daily trading value. For the Nasdaq-100®, securities must have a three-month average daily traded value of at least $5 million. Since only very large companies – typically with full market capitalizations over $100 billion as of March 2026 – would have qualified for fast entry, they are expected to easily and quickly meet this requirement. However, an average daily traded value of at least $5 million from the time of listing will still be required for fast entry candidates. Many indexes have included seasoning requirements to ensure that traditional IPOs undergo price discovery and stabilization before being included. These requirements were originally intended to prevent small or little-known companies from entering too soon. However, there is now a trend toward IPOs being larger and more mature than in the past. Companies expected to meet the fast entry threshold are likely to be among the world’s most significant and well-known firms. High investor interest and trading volumes should accelerate price discovery, further supporting a shorter seasoning period. Note that the seasoning period for companies outside of the Top 40 remains at three months.
Several indexes have changed not just Nasdaq, but it’s one more people have heard about.
SpaceX is just another one on top of the pile, whenever it gets included.
Valuation multiples always mean revert on a long enough timeline... you can position for it today if you care to.
Satellite launch business has $4.1 billion in revenue, but only growing 8% annually. Most of the revenue is from Starlink. It has $11.4 billion in revenue, with around 50% growth. Blue Origin will offer them competition soon.
X, formerly Twitter, has around $2B revenue, limited potential.
The massive 2030 projections ($474B total, $144B Starlink, $322B AI) are Goldman Sachs' IPO roadshow model. The projections are so aggressive they feel scammy.
SpaceX's 2025 revenue is $18.7 billion. A typical premium valuation for a top-tier tech company might be around 10x to 14x revenue, which would imply a strong IPO valuation of roughly $187 billion to $262 billion.
The reason for the outlandish valuation is because of naive retail investors who believe Elon Musk has never failed at anything.
Edit: Ops SPY didn’t change their rules.
For others like qqq it has no bearing to be frank. It follows the nasdaq 100. Maybe an argument that the extra few months would have allowed more price discovery but I am not so sure.
mattmaroon•1h ago
And to be clear, I’m not saying it’s a good thing. I just don’t think it matters so much.
Retric•1h ago
It’s a 24 year old company with a current high flying stock price based on very questionable numbers.
pclmulqdq•1h ago
Retric•58m ago
“In 2025, SpaceX generated $18.7 billion in revenue, with its Starlink satellite internet service accounting for $11.39 billion, or 61% of total sales.”
Tesla had higher revenue number in at the start of 2019, when it had a market cap of ~0.06 trillion. Further Tesla was highly volatile in 2021 despite huge earnings growth with some people bank when it fell from 1.2T to 0.34T before recovering.
rayiner•7m ago
nullstyle•1h ago
Remember mars by 2024? I think that was around the time they started accepting deposits on tesla semi.
saturn8601•43m ago
Panzer04•1h ago
The one saving grace is s&p isnt changing anything, and they were by far the biggest index.
downrightmike•1h ago
ribosometronome•1h ago
loeg•1h ago
nrmitchi•35m ago
mschuster91•34m ago
keernan•28m ago
There are ETFs that were issued tied to the Nasdaq 100 which are therefore legally bound to buy SpaceX. But the biggest immorality is the SEC allowing Musk's attempt to manipulate the market by: 1. Setting an IPO price for SpaceX (which absorbed xAi and its money guzzling losses) at unsustainable, incredibly inflated prices; and then 2. Putting incredible pressure on SP500 and other index makers to change their rules to force the purchase of SpaceX at those sky high prices (in an IPO, company gets to set the IPO price).
It's legal. At least in the eyes of the SEC which, of course, is an institution that is controlled by the wealthiest who control the markets, so of course it's legal.
But it is outrageous market manipulation that is fraudulent in its intent to enrich the wealthiest man on earth at the expense of ever wage earner putting her money into Index Funds.
Thank goodness the S&P and CRSP refused to change their rules. Otherwise the shifting of risk from Musk onto the shoulders of every working American would have been complete.
HWR_14•1h ago
redox99•47m ago
asveikau•57m ago
mschuster91•35m ago
A stock's value can disappear in a matter of days to a degree it leads to a complete collapse. It has happened before, see Enron or Wirecard.
> It’s not like it wasn’t going to end up in every index in a year.
Sure, but it's still not wise to let unripe stocks into most American and RoW retirement funds. There's a reason why many complex software projects keep some sort of "staging" tree, and the stock markets should do so as well.
wolvoleo•28m ago
And then the fall down is hard.