The largest IPO in history lands this Friday. On June 12, SpaceX stock starts trading on the Nasdaq under the ticker ‘SPCX’ at an expected price of $135 a share, amounting to an estimated valuation of $1.75 trillion. That would more than double the record Saudi Aramco set in 2019. After two decades of Elon Musk insisting the company would stay private, everyone suddenly wants in.

Here is what the headlines skip: buying the stock is only one way to play it, and it may not be right for everyone. The intended time horizon and appetite for risk can lead different investors down different routes. At launch, three main options are likely to be on the table for consideration. Below is what each one entails, and what they are generally intended for.

Route 1: Direct SpaceX stock (SPCX)

The simple and obvious route. Once SpaceX starts trading on the Nasdaq (SPCX), it behaves like any other listed stock: buy it through a brokerage account, hold it for as long as you like, sell when you choose. No leverage, no daily reset, no decay working against you over time. Just simply own a share of the company itself.

A few things worth knowing about this option. Currently, only an estimated 3% to 4% of total shares will be available to trade at launch, which can lead to sharp price swings during the early sessions. Access has opened up across the major brokerages: Robinhood, SoFi and E*Trade are taking orders with no account minimum, Fidelity from $2,000, and Schwab from $100,000, though Fidelity will block you from future new issues if you sell within the first 15 days. Direct shares often make sense for investors seeking straightforward ownership in a diversified portfolio and can stomach the volatility that can follow a high-profile debut.

Route 2: Leveraged exposure (SPCU)

The Defiance Daily Target 2X Long SpaceX ETF (SPCU) seeks to provide double the daily performance of SPCX. Its purpose is essentially providing a mechanism to amplify a short-term thesis beyond what the underlying equity permits.

An IPO of this magnitude, characterized by restricted supply and ever-rising retail interest, is primed for significant volatility, which is what the SPCU ETF is engineered to capture. Should SpaceX stock gain 5% in a session, the ETF targets a 10% move. This heightened exposure is accessible via a standard ticker without the need for margin accounts, options clearance, or the threat of margin calls. The downside is limited to the initial capital deployed, with no obligation for additional funding.

The caveat lies within the fund's internal machinery. Because the leverage resets each morning to target the specific daily move on the SpaceX stock price, performance does not scale linearly over multiple days. In choppy, indecisive markets, this recurring reset triggers volatility decay, which can erode value. Defiance is transparent regarding these risks: beyond a single trading day, the fund may fall in value even if SpaceX stock remains stagnant or gains value, and a total loss of principal within 24 hours is possible. Historical data from similar vehicles, such as leveraged Tesla or Nvidia funds, help illustrates this risk, with returns often trailing the theoretical 2X benchmark over longer windows. Furthermore, the SPCU ETF does not hold SpaceX shares at all; it builds its exposure out of swaps and options.

Ultimately, the utility of the SPCU ETF depends on the duration of the position. It is fundamentally a single-day tool serving active investors managing a position inside a volatile window and exiting quickly.

Route 3: Passive index exposure

Alternatively, exposure through index funds can deliver immediate diversification beyond just SpaceX, but the picture here is more nuanced.

The S&P 500 is closed off for now: SpaceX fails all three eligibility tests at once. It lacks the 12-month trading history the index requires, it posted a $4.94 billion net loss in FY2025 against a rule demanding GAAP profitability, and its 3% to 4% float falls far short of the 10% minimum. On 4 June, S&P Dow Jones Indices reaffirmed it would not waive any of these eligibility criteria for mega-cap IPOs, pushing the earliest possible S&P 500 inclusion to mid-2027 and even then only if the company is turning a profit.

Other indices are still a possibility without the 12-month waiting period. The Nasdaq's fast-entry rule allows inclusion in the Nasdaq-100 after just 15 trading days if SpaceX ranks among the top 40 constituents by market cap, and FTSE Russell can add it to the Russell 1000 after only 5 trading days. J.P. Morgan estimates Russell 1000 inclusion alone would draw roughly $4 billion in passive funds to SpaceX stock.

Next steps

Three different routes, three different use cases. Direct shares (SpaceX stock) for straightforward ownership, the index route for an instantly diversified exposure ( if SpaceX is included in the coming weeks ), and the SPCU ETF for leveraged daily exposure.

If you want to understand the leveraged product in more detail, Simply Wall St has a full deep-dive on what the SPCU ETF does and does not do. To track the company and the wider sector, see the Simply Wall St SpaceX company report and the Global Space Race Screener.

Disclaimers

The article was written independently by the author, without issuer input or approval. Defiance Analytics has a marketing services agreement with Simply Wall St, further details on compensation and other important information, please see our disclosure at the end of this article.

Please see the preliminary prospectus for more information. Subject to completion. Short-term investment. Leveraged funds carry significant risk. The information in the Prospectus is not complete and may be changed. The Trust may not sell these securities until the registration statement filed with the U.S. Securities and Exchange Commission is effective. This is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. The Fund does not directly invest in the underlying stock. Not suitable for all investors. Investment involves significant risk.

Investing involves risk, including possible loss of principal. Leveraged ETFs are not suitable for all investors and are designed to be used by knowledgeable investors who understand the consequences of seeking daily leveraged (2X) investment results. The Fund rebalances daily; for periods longer than a single day it will lose money if the underlying security's performance is flat, and may lose money even if the underlying security's performance rises over a period longer than a single day. An investor could lose the full principal value of their investment within a single day. The Fund should not be expected to provide two times the cumulative return of the underlying security for periods greater than a day. The Fund does not directly invest in the underlying stock. Past performance does not guarantee future results. Consider the investment objectives, risks, charges, and expenses carefully before investing. See the prospectus containing this and other information. Read it carefully before investing.

Simply Wall St analyst Mitch Lawler and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.