Which would buy more if SpaceX goes public, VTI or VOO?
VTI adds and holds a stock in its index after listing if it meets the criteria for the CRSP U.S. Total Market Index. VOO holds it only if it is added to the S&P 500 index. The actual purchase size depends on the timing of inclusion and the publicly available float.
If SpaceX goes public, attention is focused on which ETF will hold more shares. Vanguard's leading ETFs, VTI and VOO, track different indexes. The two ETFs adjust their holdings to reflect changes in the composition of the indexes they track.
VOO tracks the S&P 500 index. Inclusion in the S&P 500 is determined by the S&P Index Committee. The criteria for inclusion include market capitalization, liquidity, headquarters location, and listing exchange.
VTI tracks the CRSP U.S. Total Market Index. This index broadly includes companies ranging from large-cap to small- and mid-cap stocks. Inclusion in the CRSP index requires meeting criteria such as listing status and publicly available float.
The timing of purchases by the two ETFs varies depending on when a stock is added to an index. VOO adds a stock to its portfolio only when it is included in the S&P 500index. VTI can hold a stock once it is included in the index after listing if it meets CRSP criteria.
Vanguard adjusts the weighting of its holdings according to the index composition of each ETF. ETFs buy and sell the necessary shares in line with the timing of index changes. Therefore, the actual purchase size is determined by the timing of index inclusion, each ETF’s assets under management, and the publicly available number of shares outstanding.
Ultimately, which ETF will hold more SpaceX shares depends on SpaceX’s listing structure and publicly available shares outstanding, as well as the inclusion decisions of S&P and CRSP. Investors should check inclusion announcements and index rebalancing disclosures. The specific purchase size can only be confirmed after the inclusion announcement.
Sources: Yahoo Finance
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