SpaceX’s Nasdaq-100 Inclusion Shows Why Forced ETF Buying Can Backfire

SpaceX's inclusion in the Nasdaq-100 index after just 15 trading days (down from 90 days) triggered $4.3 billion in forced passive buying from ETFs and index funds. Despite analyst buy ratings with targets up to $800, the stock fell 6% on inclusion day. The stock surged 67% in its first three weeks then fell back 34%, leaving most retail investors flat or underwater. With only 4-5% public float and massive insider unlock potential by September, the article warns that forced index inclusion can shift risk onto ordinary investors who never chose to own the stock.