Good! It’s three shitty companies in a SpaceX trench coat.

The S&P 500 is Wall Street’s most ​widely followed benchmark. Passive S&P 500 index funds with trillions of dollars in assets would have been forced to buy up SpaceX shares had ‌rules been ⁠changed to admit it to the index.

“It speaks highly of the credibility of S&P Dow Jones Indices to be rules-based and make sure there’s profitability before entrance to the index,” said Art Hogan, chief market strategist at B. Riley Wealth.

“Making exceptions because companies are so large and have been private so long yet are still not profitable, didn’t make a great deal of sense.”

Nasdaq has already ​made changes that will make it ​easier for SpaceX, Anthropic and ⁠other newly listed megacaps to join its Nasdaq 100 (.NDX), opens new tab index.

Nasdaq 100 index funds will be forced to buy a sizeable portion of publicly available SpaceX shares when the company joins that ​index.

With this announcement by S&P, VFIAX-Vanguard 500 Index Fund Admiral Shares (and VOO ETF) is now superior to Vanguard Total Stock Market Index Fund Admiral Shares ticker: VTSAX (and VTI ETF) as VFIAX will not hold any SpaceX and investments will be protected from the SpaceX fleecing of investors.

I’ll be liquidating my entire position of VTSAX on Monday and putting it all in VFIAX in my 401k.

I wish it were this easy to liquidate “total market funds” to switch them to S&P500 tracked funds in brokerage accounts. :(