SpaceX has filed its paperwork to go public, with an offering likely valuing the Elon Musk-founded space company at $1.75 trillion or more. Investors looking to get access to SpaceX stock ahead of the IPO have several options from public companies, mutual funds and ETFs.
Here's a look at the funds that own SpaceX stock.
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Top Funds for SpaceX Exposure
There used to be a limited number of ETFs that offered exposure to the space sector, with the Procure Space ETF (NASDAQ:UFO) the first pure-play for the sector. That ETF might be waiting to add SpaceX stock exposure until the company is officially public.
Some mutual funds and ETFs offer exposure ahead of the IPO, according to data compiled by Bloomberg ETF writer James Seyffart.
These are the current top 10 funds (mutual funds and ETFs) that have SpaceX stock based on the weighting of the space company in the fund. Here are the funds and the percentage of assets SpaceX represents.
- Baron Partners Fund (BPTRX): 33% of assets
- Baron Asset Fund (BARAX): 25.5%
- Baron Focused Growth Fund (BFGFX): 21.2%
- Baron Global Opportunity Fund (BGAIX): 20.5%
- ERShares Private-Public Crossover ETF (NASDAQ:XOVR): 20%
- The Private Shares Fund (PRIVX): 18.3%
- Baron Opportunity Fund (BIOPX): 15.4%
- Baillie Gifford US Growth Trust PLC (USA): 11.4%
- Ark Venture Fund (ARKVX): 10.3%
- Tema Space Innovators ETF (NYSE:NASA): 10.2%
It shouldn't come as a huge surprise that the funds from Baron Capital have large weightings for SpaceX. Ron Baron has been a big believer in SpaceX for years and one of the company's biggest bulls
In a recent interview, Baron said SpaceX could be worth $10 to $30 trillion in the future.
"This is going to become the largest company on the planet," Baron told CNBC.
Baron said he plans on buying another $1 billion in SpaceX stock at the IPO if he's able to get filled.
Baillie Gifford and Ark Invest have also been big bulls on SpaceX and everything Musk-related with funds from those two companies appearing on the list.
The two ETFs, which generally have lower expense ratios than mutual funds, make the list and might be the easiest and cheapest way for investors to get early exposure to SpaceX.
Ranked by the market valuation of the SpaceX stake, here are the top 10 funds and the amount of SpaceX stock held:
- Fidelity Contrafund (FCNTX): $8.05 billion
- Baron Partners Fund (BPTRX): $3.89 billion
- Fidelity Blue Chip Growth Fund (FBGRX): $3.13 billion
- Fidelity Growth Company Fund (FDGRX): $2.35 billion
- Fidelity OTC Portfolio (FOCPX): $1.99 billion
- Fidelity Advisor New Insights Fund (FNIAX): $1.68 billion
- Fidelity Contrafund K6 (FLCNX): $1.15 billion
- Baron Asset Fund (BARAX): $845 million
- Baron Focused Growth Fund (BFGFX): $821 million
- Fidelity Growth Co K6 Fund (FGKFX): $792 million
No ETFs make this top 10 list and there is minimal crossover with the list above of heavy weighting. Only the Baron Partners Fund, Baron Asset Fund and Baron Focused Growth Fund make both lists.
The largest fund for SpaceX stock holdings in the Fidelity Contrafund, with the space stock making up around 5.1% of assets as the fifth-largest holding in the fund.
Other Ways to Get SpaceX Exposure
Outside of the funds listed above, there are several ways to get exposure to SpaceX stock ahead of the IPO.
Several public companies own stakes in SpaceX. The list includes Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL), Bank of America Corporation (NYSE:BAC) and EchoStar (NASDAQ:SATS).
Alphabet invested $900 million in SpaceX back in 2015 when the company was valued at around $12 billion. The tech giant owns around 7% of SpaceX, according to reports.
Bank of America invested $250 million in SpaceX back in 2018 when the company was valued at around $30 billion. The SpaceX stake makes up a small portion of Bank of America's overall investments.
EchoStar reached a deal to sell spectrum licenses to SpaceX and got $8.5 billion in cash and $8.5 billion in SpaceX stock in exchange. At the time, SpaceX was valued at $400 billion, which could mean EchoStar’s SpaceX stock is now worth more than $37 billion. With a market capitalization of $35 billion and an enterprise value of $62 billion, the stake in SpaceX could represent a large asset for the company in the future.
There is also the Destiny Tech 100 Inc (NYSE:DXYZ) fund, which has been volatile in the past, given its exposure to some of the top private companies. SpaceX is the second-largest holding in the closed-end fund at 14.5% of assets. The fund notes that it does not have direct investment in SpaceX, but rather exposure through SPVs (special purpose vehicles). This may mean less direct ownership for investors in the fund.
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