US-domiciled ETF in vested benefits / Fz account (for US person)

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1

Who has a good vested benefits solution for US persons (avoiding non-US funds)?

Are there any that will allow investing in US-domiciled ETFs?

2

Would stay away from any index funds at the moment https://youtu.be/sYA-z0Y8WRQ

3

Consider capped SP500 and Nasdaq-100 ETFs to avoid the biggest risks (iShares has quite a few on the SP500), or equal-weighted Nasdaq-100 ETFs.

However if the big 7 take a deepdive there’s no way to escape the resulting pneumonia affecting everything Wallstreet and probably stocks worldwide.

4

Basically that may only reduce the risks. Still many many funds will need to invest and most likely at a premium cost.

Asked Lumo about it and got this response:

Here is the breakdown of how many funds will likely be involved and why:

1. The “Automatic” Buyers: Thousands of Funds

Once SpaceX is added to a major index (like the S&P 500 or Nasdaq-100), every single fund that tracks that index is legally required to buy the stock to match the index’s composition.

  • S&P 500 Trackers: There are roughly 1,500+ mutual funds and ETFs that track the S&P 500 (e.g., VOO, IVV, SPY, and hundreds of smaller institutional funds). If SpaceX joins the S&P 500, all of these will buy.
  • Nasdaq-100 Trackers: There are roughly 500+ funds tracking the Nasdaq-100 (e.g., QQQ). If SpaceX joins here, they will also buy.
  • Total Estimated Count: Between 2,000 and 3,000+ individual funds could be forced to buy SpaceX shares immediately upon inclusion.

2. The “Discretionary” Buyers: Hundreds More

Beyond the automatic index funds, there are thousands of actively managed funds (mutual funds, hedge funds, pension funds) that choose to hold SpaceX because it fits their strategy (Tech, Aerospace, Growth).

  • Tech Funds: Funds like ARK Innovation (ARKK) or Fidelity Contrafund will likely buy.
  • Sector Funds: Specialized Space & Aerospace ETFs (e.g., UFO, PRN) will likely increase their holdings significantly.
  • Global Funds: International funds that track global indices (like MSCI World) will also buy if SpaceX is added globally.

3. Why the Number is So High

The reason the number is in the thousands rather than dozens is due to the structure of the US financial system:

  • Passive Investing Dominance: Over 50% of all US equity assets are now in passive index funds.
  • Replication: Many different companies (Vanguard, BlackRock, State Street, Fidelity, Schwab, etc.) offer their own version of the “S&P 500 Fund.” They all have to buy the same stock.

4. The Timeline for Buying

  • Phase 1 (IPO Day): Only the specific funds that negotiated a spot in the IPO (usually large institutional investors like Fidelity, BlackRock, T. Rowe Price) will buy. This is a small group (maybe 50–100 major funds).
  • Phase 2 (Index Inclusion - Weeks/Months Later): Once SpaceX is officially added to the S&P 500 or Nasdaq-100, the thousands of passive funds mentioned above will be forced to buy. This is when the volume will explode.

Summary Estimate

  • Direct IPO Participants: ~50–100 major institutional funds.
  • Post-Inclusion Index Funds: 2,000–3,000+ funds (automatically required to buy).
  • Active/Thematic Funds: 500–1,000+ funds (choosing to buy).

Total Potential Investors: 3,000 to 5,000+ distinct funds could end up holding SpaceX stock within a year of its listing.

Key Takeaway: You don’t need to worry about “which” funds are buying. If SpaceX joins the S&P 500, almost every major retirement account (401k) and index fund in the US will end up owning a piece of it automatically.