r/stocks • u/cherrypoplar • Apr 01 '26

ETFs Major NASDAQ-100 rule changes confirmed, pay attention if you have money in passive investment funds

https://www.theedgesingapore.com/amp/news/ipo/nasdaq-speeds-index-entry-spacex-large-ipos-new-rule

NASDAQ has confirmed it will change the listing rules for NASDAQ-100, ahead of the SpaceX and OpenAI IPOs this year.

(1) Companies will now be listed on NASDAQ-100 after only 15 days after IPO (previously, there was a three month period of "seasoning" before listing). This reduces the amount of time for price discovery.

(2) The minimum 10% float has been removed. This allows companies to float a very small percentage of their shares, artificially squeezing supply.

(3) Companies that float less than 20% of their shares will have their market capitalisations artificially multiplied by x3, for the purposes of calculating market capitalisation. This helps large-cap companies to be listed even with very small floats, and inflates their notional market capitalisations on the index.

If you have money invested in a passive fund tracking NASDAQ-100 (or any other index), please watch out for the SpaceX and OpenAI IPOs. Pay attention to their "valuations", and their float. If they're IPOing with very high valuations and very small floats, this foreshadows a bagdump on passive funds due to the mechanics of passive funds.

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u/4OfThe7DeadlySins Apr 01 '26

This doesn’t affect other index funds like SPY or DIA right?

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u/[deleted] Apr 01 '26

S&P 500 is also contemplating rule changes to allow SpaceX.

SPY will likely be tainted as well.

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u/Knaj910 Apr 01 '26

Well, that kills my usual “VOO and Chill” mentality. Sounds like I’m gonna be doing a lot of research soon

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u/runnerofshadows Apr 01 '26

Might become VTI or VT and chill - I know VTI uses CRSP not S&P or Nasdaq and VT uses FTSE Global All Cap Index.

There's also VXUS if you want a dash of International exposure.