Elon Musk's company SpaceX is supposed to have an IPO this year. At its targeted valuation it would be one of the largest companies in the world. Its market cap would be larger than the seven global companies shown in the picture.
To me, this is one of the drawbacks of investing in ETFs: we're "forced" to buy overpriced companies, like SpaceX.
Personally, I'm also bothered by Tesla's large weighting in the S&P 500, but SpaceX's valuation is truly out of this world.
You say we're forced to buy overpriced ETFs, but that company probably won't be added to the S&P 500 right away 🤔😉 It's clear it'll be overhyped and the FOMO of all FOMOs 🤣🤣, but you have to think about the robotaxis, Roadsters and the robots Musk promised us 😉🤣🤣
It's crazy, but I'd wait for the IPO and the results — it's possible the valuation will align with the fundamentals.
But Tesla still doesn't have such a large weighting in the S&P 500, and SpaceX isn't likely to enter that index anytime soon. On the other hand, I think SpaceX will surprise us and change a lot of people's minds about the company.