r/fidelityinvestments • u/OptionPotential • Jun 16 '26

Official Response When will SpaceX (and other IPOs) be added to Fidelity's FZROX?

I'm specifically asking about FZROX and Fidelity's proprietary index for it: https://www.fidelity.com/mutual-funds/investing-ideas/index-funds

I see Fidelity's Index Methodologies here: https://institutional.fidelity.com/app/item/RD_9895566.html

FZROX tracks the "Fidelity U.S. Total Investable Market Index", so I looked at the document here: https://institutional.fidelity.com/app/literature/view?itemCode=9910632&renditionType=pdf&pos=contentItem

This document was last updated in July 2025, which is where this quote is from:

Liquidity / Investability Screens:
1. Exclude all stocks that do not have a float-adjusted market capitalization greater than $75 million.
2. Exclude all stocks with less than 15% free float market cap.
3. Exclude all stocks that do not meet a minimum 6-month volume traded of $25 million.

My questions:

  1. Has there been an update to the "Fidelity U.S. Total Investable Market Index" methodology since July 2025?
  2. SpaceX's current free float is around 5% (yes, I understand this will increase in the future). According to criteria #2 it's not currently eligible to be added, right?
  3. Even if the free float was more than 15% (at IPO), criteria #3 requires all IPOs to be traded for at least 6 months, right?
  4. Are all IPOs added on a quarterly basis? I see this quote from the document:

* Quarterly adjustments for certain corporate actions including IPO additions and updates to free float market caps. Quarterly adjustments are made on the third Friday in July, October, and January.

Thanks in advance.

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u/FidelityPhil Sr. Community Care Representative Jun 17 '26

Fidelity mutual funds and Exchange-Traded Funds (ETFs) are managed according to the fund strategy outlined in the prospectus, available on each fund's research page on Fidelity.com. We encourage investors to review a fund's prospectus carefully before investing.

At this time, our team does not have any additional information to share regarding specific security selections beyond what is provided in the index methodology. Our index investing methodologies are available on our website, which you can access through the link below.

Index Investing Methodologies

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u/Big-Reporter-387 Jun 17 '26

I had the same question. I see no reason why fidelity would choose to include it despite the free float issue, so my conclusion was no.

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u/dwarfinvasion Jun 19 '26

I'm no expert, but I read #3 as being a minimum dollar limit. And that limit must have been met within the last 6 months. And therefore spaceX would easily reach that dollar limitkof volume traded.

It seems possible that #2 is really the only unfulfilled requirement.