Et tu too, FTSE Russell?

FTSE Russell has introduced “Fast Entry” enhancements to its Russell US indexes that would allow large IPOs such as SpaceX to be added to indexes after the fifth day of trading and based on free‑float (c.$70bn for SpaceX) rather than headline market cap. The rule also permits IPOs with <5% float to be deemed eligible if lock‑ups bring them above minimums within 12 months. That means passive and pseudo‑passive funds benchmarked to Russell indices may be forced to buy SpaceX far sooner — roughly ten trading days before some Nasdaq trackers — amplifying early demand. FTSE Russell’s methodology will also split SpaceX into growth/value buckets using sector averages (about 18% growth, 82% value), affecting which funds and ETFs pick it up. The change aligns Russell treatment with existing FTSE fast‑entry rules and could materially affect rebalancing flows for the large pool of assets indexed to Russell/FTSE benchmarks.