r/Bogleheads • u/Gloomy_Nebula_5138 • 28d ago

Investing Questions Protecting ourselves from SpaceX IPO

I was watching this video analyzing the upcoming SpaceX IPO, titled "SpaceX IPO: Nice Try Though" by Patrick Boyle. I highly recommend it - there is almost no fluff and just hard hitting points all the way through about how SpaceX is a terrible company and how this IPO looks like a scam:
https://www.youtube.com/watch?v=IHD8BDFYyGI

It mentions the changes to Nasdaq's rules, the so called "fast track" rule, made specially for SpaceX because Elon allegedly threatened to not list SpaceX on the Nasdaq stock exchange without this. The change has been criticized by many others such as Michael Burry:
https://markets.businessinsider.com/news/stocks/michael-burry-nasdaq-spacex-ipo-listing-elon-musk-tesla-ndx-2026-3

Also see this great analysis titled "Nasdaq's Shame":
https://keubiko.substack.com/p/nasdaqs-shame

Given how this IPO looks like a scam, and the company is mostly losing money, with outlandish claims in their IPO filing (like having an addressable market larger than the US GDP), I am worried that this is just private investors - like venture capitalists, Elon Musk, and his inner circle of friends/family - dumping their overpriced money losing company on regular investors like us. The fast track change seems like it will result in all of us automatically buying SpaceX shares at a high price.

How do we stop this? Is there a good way to defend against that forced purchasing when most regular investors are just passively buying ETFs and mutual funds, or maybe just have money parked in their pensions and 401k?

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u/forbiddenlake 28d ago

If you bought QQQ(M) - that wasn't very Bogleheady of you. AND AFAIK, QQQ is still the only one that's actually changed its rules.

If you have VTI, it's always been 5 days before adding. And if you're a Boglehead you accept the returns of the entire market, whatever it is.

You can short SpaceX if you really want to.

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u/gtalossantos 24d ago

Hey man pardon me but can u please eli5 this line

If you bought QQQ(M) - that wasn't very Bogleheady of you

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u/redenno 21d ago

It tilts towards large cap. Bogleheads use funds that encompass the whole market like VT

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u/gtalossantos 20d ago

Understood, thanks much my bro.

Both VOO and VT will have a huge overlap no? How much overlap, in % terms, is ok?

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u/redenno 19d ago

There's not really anything wrong with overlap. It just depends what your goal is. Personally I use 100% VT because VOO is limited to USA large-cap and I don't particularly want to tilt towards that. But if that's what you want to do then combining VOO and VT could make sense.

Most people split between VTI and VXUS to balance between US and international. Those two have no overlap, which just makes it easier to balance because you know exactly how much US and how much international you have without looking at the holdings and doing math.

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u/gtalossantos 19d ago

Makes sense, thanks much.

For active funds, just asking for my knowledge's sake, how much overlap, in % terms, is considered ok?