Space Exploration Technologies Corp's SPCX stock has rapidly penetrated the ETF market, with its inclusion in both space-themed and value-oriented funds following its June 12 listing. The aerospace giant's presence in portfolios extends beyond niche space investments, signaling broad market acceptance. This development underscores the company's growing influence across diverse investment strategies.

Within days of its debut, SpaceX was added to the Procure Space ETF (UFO), which assigned it a 6.17% portfolio weight after the VettaFi Space Index reconstitution. Tuttle Capital Management also incorporated SPCX into three actively managed funds: the Tuttle Capital Space Industry Income Blast ETF (SPCI), Tuttle Capital UFO Disclosure ETF (UFOD), and Tuttle Capital Heavy Assets Low Obsolescence ETF (HALX). The Tema Space Innovators ETF (NASA), focused on the commercial space economy, already allocates 12.35% of its portfolio to SPCX.

ETF Allocations and Strategic Fit

ProcureAM confirmed SpaceX's inclusion in the VettaFi Space Index, citing its market capitalization, liquidity, and space-related revenues. Tuttle Capital highlighted SpaceX's versatility, noting its role in the space industry for SPCI and UFOD, while HALX's investment aligns with an AI infrastructure thesis. The firm emphasized SpaceX's orbital data center initiative, leveraging Starlink technology, as a key driver for its inclusion in HALX.

Value ETF Inclusion Sparks Discussion

SpaceX's appearance in the Schwab U.S. Large-Cap Value ETF (SCHV) surprised investors, as the fund typically targets mature, lower-valuation companies. The allocation, though negligible at 0.012% of SCHV's $15.8 billion asset base, challenges traditional ETF labels. It highlights how evolving businesses can fit into multiple investment categories as index methodologies adapt to market dynamics.

Future ETF Adoption

SpaceX's ETF footprint is expected to expand further, potentially entering AI infrastructure portfolios, broad-market indexes, and growth funds. For ETF investors, SpaceX is no longer just a niche space-industry bet but a stock that fund managers across categories cannot ignore.

Oppenheimer analyst Timothy Horan has initiated coverage on SpaceX (NASDAQ: SPCX) with an Outperform rating and a price target of $190. This target represents an upside of nearly 41% from the company's IPO offering price of $135 per share. In its investor note, Oppenheimer described SpaceX as the only vertically-integrated AI company with the necessary capital, data, LLMs, hardware, manufacturing, and engineering talent.

Analyst Coverage and Valuation

The initiation marks the first-ever coverage of SpaceX's stock by Oppenheimer. The firm's optimistic outlook contrasts with views from other market observers regarding the company's valuation.

Investor Gary Black of The Future Fund LLC predicted that the Friday IPO would lead Tesla Inc. shareholders to exit their positions in the electric vehicle giant to participate in the SpaceX offering. Black expressed caution regarding SpaceX's valuation, calling the company "richly valued" in a post on X. He stated he would avoid the IPO and wait for the stock value to stabilize.

Geopolitical Context

The valuation discussion follows a report by Iran's Fars news agency indicating that Iran has added SpaceX shareholders' infrastructure to its target list. GLJ Research analyst Gordon Johnson stated that the Iranian government's decision to add Elon Musk-led SpaceX to its target list is a strategic move for Tehran. Johnson argued that targeting SpaceX infrastructure is smart because the stock market rising is the primary concern for US politicians.

SpaceX assets located in the region include Starlink ground stations in Israel, Qatar, Jordan, the United Arab Emirates, and Oman. The specific infrastructure targeted by Iran includes these ground stations and assets linked to SpaceX shareholders.

Elon Musk's Net Worth

As the IPO approaches, SpaceX and Tesla CEO Elon Musk is on track to become a trillionaire. The SpaceX IPO has boosted his estimated net worth to approximately $971 billion, leaving him $29 billion shy of the $1 trillion milestone. Musk's holdings in SpaceX are now valued at about $688 billion, contributing significantly to his overall wealth.