CRSP US Total Market Index Overview
The CRSP US Total Market Index includes all 3,498 companies listed on U.S. stock exchanges. It’s interesting to note that just the top 59 companies make up around 70% of the index’s total market capitalization. Among these, big names like Nvidia, Alphabet, and Apple collectively hold a staggering value of $13.6 trillion.
CRSP Mega Cap Growth Index Changes
The CRSP Mega Cap Growth Index consists solely of those 59 large companies, but there’s potential for additions soon. One notable newcomer could be SpaceX (ticker symbol: SPCX), the space transportation company led by Elon Musk. It recently went public with a market cap exceeding $1.7 trillion, though only around $75 billion in shares were available for trading initially.
The Vanguard Mega Cap Growth ETF (MGK), which tracks the CRSP Mega Cap Growth Index, might begin acquiring SpaceX stock as early as June 19. Here are the key details for investors.
A Closer Look at the Vanguard ETF
The Vanguard Mega Cap Growth ETF’s top ten stocks represent an impressive 68.9% of its portfolio by value. Here’s a quick snapshot:
| Stock | Market Capitalization | Vanguard ETF Weighting |
|---|---|---|
| 1. Nvidia | $4.9 trillion | 13.77% |
| 2. Apple | $4.3 trillion | 11.79% |
| 3. Alphabet | $4.3 trillion | 11.55% |
| 4. Microsoft | $2.9 trillion | 8.69% |
| 5. Broadcom | $1.8 trillion | 5.20% |
| 6. Amazon | $2.6 trillion | 5.12% |
| 7. Meta Platforms | $1.4 trillion | 3.90% |
| 8. Tesla | $1.5 trillion | 3.76% |
| 9. Eli Lilly | $1 trillion | 2.82% |
| 10. Advanced Micro Devices | $800 billion | 2.28% |
It’s notable that while SpaceX has a high initial market cap, its float-adjusted figure—based on how many shares are publicly available—is much smaller. Only about 4% of SpaceX stock was sold when it went public, translating to a float-adjusted market cap of just $75 billion, which could make it one of the least significant holdings in the Vanguard ETF. Some estimates suggest its weighting might be as low as 0.16% to start with.
However, this figure could change quite a bit over time. Currently, early investors and employees are under a tiered lock-up that restricts their ability to sell stock for the first 180 days post-IPO. Once these restrictions expire, the available float could increase dramatically, thus enhancing its share in the Vanguard ETF.
Potential for Inclusion in the Vanguard ETF
CRSP has stated that it can quickly add newly listed companies to the index if they meet certain criteria, such as floating at least 10% of their shares. SpaceX hasn’t met this yet, but its expected weight of about 0.16% could qualify it for an expedited inclusion process. Since SpaceX debuted on June 12, it could potentially join the Mega Cap Growth Index and thus the Vanguard ETF by June 19.
Performance of Vanguard Mega Cap Growth ETF
The Vanguard Mega Cap Growth ETF has achieved a compound annual return of 14% since its launch in 2007, surpassing the average annual return of 10.3% from the S&P 500. This ETF’s exceptional performance largely stems from its concentrated holdings among America’s largest and typically fastest-growing businesses.
SpaceX entered the market at a high valuation, which could lead to short-term volatility. This makes the small share it currently holds in the Vanguard ETF somewhat of a relief for investors, as it may mitigate potential performance issues for the fund during this initial phase.
