Meet the Vanguard ETF That Increased Its SpaceX Holding by 39% in 1 Month and Shows No Signs of Slowing Down
Key Points
ETFs are increasing their holdings in Space Exploration Technologies as more shares become available for trading on the Nasdaq.
SpaceX adds diversification to a sector heavily concentrated in media companies.
SpaceX will likely become a top-three holding in the Vanguard Communication Services ETF in the coming months.
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Several exchange-traded funds (ETFs) have gradually increased their positions in Space Exploration Technologies (NASDAQ: SPCX) as additional shares have been unlocked. But the Vanguard Communication Services ETF (NYSEMKT: VOX) has been one of the most aggressive buyers.
When SpaceX held its initial public offering on June 12, 2026, only about 5% of shares were available for trading on the Nasdaq. As more shares are unlocked and sold, the number of shares available for trading by the public -- known as the float -- increases. So does SpaceX's weighting in indexes like the Nasdaq-100, which weights SpaceX based on a multiple of its float rather than its market cap until the float is big enough.
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Because of SpaceX's gradual unlocking, many ETFs have continued to buy SpaceX regardless of its share price, although some ETFs have slowed their purchases of SpaceX in recent months.
Here's why the Vanguard Communications Services ETF will likely continue loading up on SpaceX stock and why it's one of the best ETFs to buy for exposure to SpaceX.
Image source: Getty Images.
The Vanguard Communications Services ETF holds 1,170,398 SpaceX shares
Several major Vanguard ETFs have been buying SpaceX, including the Vanguard Morningstar Total Stock Market ETF, the Vanguard Total World Stock ETF, and the Vanguard Morningstar Growth ETF. As of Aug. 31, SpaceX hasn't even cracked the top 50 holdings in the Vanguard Growth ETF, the top 100 in the Vanguard Total Stock Market ETF, or the top 200 in the Vanguard World Stock ETF.
That's even though SpaceX's market cap is $2 trillion at the time of this writing -- making it one of the 10 most valuable companies in the world. SpaceX will make up a larger share of these ETFs as its float increases. But for now, it remains a small holding.
The pace of buying in the Vanguard Communication Services ETF has been much faster. As of June 30, the ETF held 632,077 shares, which jumped to 842,835 as of July 31 and to 1,170,398 as of Aug. 31. That's a 38.9% month-over-month increase and an 85.2% increase in two months. SpaceX is now the eighth-largest holding in the fund. As more shares are unlocked, SpaceX could easily become a top-three holding.
Alphabet and Meta Platforms make up 42.4% of the Vanguard Communication Services ETF
Sector funds like the Vanguard Communication Services ETF offer investors one of the best ways to build a portfolio around a handful of stocks. Major players can dominate a sector ETF in ways that simply aren't possible when all sectors are lumped together, like in the Vanguard Growth ETF, which includes top growth stocks from all the sectors.
As you can see in the table, every Vanguard sector ETF except for industrials has a higher concentration in just two companies than the Vanguard S&P 500 ETF. And the Vanguard Communication Services ETF has the highest combined weighting in just two stocks.
|
Vanguard ETF |
Top Two Holdings |
Combined Weighting of Top Two Holdings |
|---|---|---|
|
Vanguard Communication Services ETF |
Alphabet and Meta Platforms |
42.4% |
|
Vanguard Consumer Discretionary ETF |
Amazon and Tesla |
37.8% |
|
Vanguard Energy ETF |
ExxonMobil and Chevron |
35.9% |
|
Vanguard Information Technology ETF |
Nvidia and Apple |
33.5% |
|
Vanguard Consumer Staples ETF |
Walmart and Costco Wholesale |
25.3% |
|
Vanguard Real Estate ETF |
Vanguard Real Estate II Index Fund and Welltower |
23.3% |
|
Vanguard Materials ETF |
Linde and Newmont |
23.2% |
|
Vanguard Healthcare ETF |
Eli Lilly and Johnson & Johnson |
21.5% |
|
Vanguard Utilities ETF |
NextEra Energy and Southern Company |
18.5% |
|
Vanguard Financials ETF |
JPMorgan Chase and Berkshire Hathaway |
17.7% |
|
Vanguard S&P 500 ETF |
Nvidia and Apple |
15.1% |
|
Vanguard Industrials ETF |
Caterpillar and GE Aerospace |
10.3% |
Data source: Vanguard.
Vanguard classifies SpaceX exclusively in the communications sector, which means it isn't in the other 10 sector ETFs. And because Alphabet, Meta Platforms, and SpaceX are so large compared to other communication services stocks -- such as streaming, legacy media, and telecommunications companies -- SpaceX will probably make up around 15% to 20% of the ETF once it is weighted by its full market cap. That's a far larger weighting than SpaceX will have in the Nasdaq-100, S&P 500 (when it likely joins in summer 2027), or growth ETFs that include all sectors.
SpaceX is reshaping the communications sector
SpaceX will evolve the Vanguard Communications Services ETF from a dynamic duo of Alphabet and Meta Platforms to a big three that includes SpaceX. It also makes the ETF appealing to both growth and value investors, as the communication sector offers exposure to new markets like artificial intelligence and robotics, while also including many cash-cow businesses that pay growing dividends.
All told, the Vanguard Communication Services ETF stands out as the best ETF to buy for investors looking to build a position around Alphabet, Meta Platforms, and SpaceX. It's an especially good buy for investors who want to see the ETF's SpaceX weighting increase rapidly, rather than buy an ETF that is acquiring SpaceX shares at a much slower pace.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Caterpillar, Chevron, Costco Wholesale, Eli Lilly, GE Aerospace, JPMorgan Chase, Meta Platforms, NextEra Energy, Nvidia, Tesla, Vanguard Morningstar Growth ETF, Vanguard Real Estate ETF, Vanguard S&P 500 ETF, and Walmart. The Motley Fool recommends Johnson & Johnson, Linde, and Nasdaq. The Motley Fool has a disclosure policy.
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