One Vanguard ETF Is Betting Big on SpaceX, But Is 20% Too Big a Bet?
The Vanguard Communication Services ETF (VOX) has elevated its stake in Space Exploration Technologies (SpaceX) by 85.2% in two months. That stake might ultimately develop to as a lot as one-fifth (20%) of the fund as soon as SpaceX’s shares totally unlock.
VOX held 632,077 SpaceX (SPCX) shares on June 30, a complete that reached 1,170,398 by Aug. 31. That makes SpaceX the fund’s eighth-largest holding, although Vanguard has not disclosed the precise share of VOX it now represents.
Is This SpaceX Concentration a Problem Hiding in Plain Sight?
SpaceX debuted on the Nasdaq on June 12, 2026, with solely about 5% of its shares out there to commerce. Each new share unlock since then has expanded that float and, with it, SpaceX’s weight inside float-based indexes.
The Nasdaq-100 weights SpaceX utilizing a a number of of its float, not its full market cap. That components applies till the float grows giant sufficient. As extra shares unlock, the float grows, and so does SpaceX’s index weight.
VOX has ridden that mechanic extra aggressively than its Vanguard friends. Other Vanguard funds have barely touched SpaceX by comparability.
A Payoff Has to be Coming?
SpaceX has not cracked the highest 50 holdings within the Vanguard Growth ETF. It can also be exterior the highest 100 within the Vanguard Total Stock Market ETF. Vanguard’s Total World Stock ETF retains it exterior its prime 200 as properly.
Vanguard classifies SpaceX completely as a communications inventory. That means its full weight lands inside VOX alone.
Alphabet and Meta Platforms already make up 42.4% of the fund. Add a totally weighted SpaceX, and VOX’s prime three holdings might account for properly over half the portfolio.
Investors already noticed that type of swing when SpaceX’s Starship milestone despatched the fill up 6% in a single session.
So how a lot of 1 still-volatile, newly public inventory belongs inside a single sector fund?
VOX’s guess pays off if SpaceX retains executing. But it means the fund’s returns more and more hinge on one still-newly public inventory. That threat stacks on prime of an already top-heavy guess on Alphabet and Meta.
That focus ought to ease over time. SpaceX’s float ought to ultimately develop giant sufficient to enter benchmarks just like the S&P 500, anticipated as quickly as summer time 2027.
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