SpaceX is back in the spotlight as 911.5 million newly unlocked shares hit the market, more than doubling the float and stirring questions about who might be buying or selling next. That kind of supply shock can reshape how index-tracking ETFs behave, especially those linked to the Nasdaq 100. This article walks through three stocks exposed to this story and how this turning point could matter for your portfolio.
The ETFs in the article below are just a starting sample, and the full screen surfaced 14 more funds with equally compelling index-tracking stories that are not covered here. To go deeper into this theme, identify patterns, and analyze how different index-trackers line up with your goals, head straight into the Index-Tracking ETFs screener.
Morningstar (MORN)
Morningstar is best known for its independent research, ratings and data on funds, ETFs, indexes and securities, which investors and advisors use to compare products and build portfolios. The largest revenue contributors are the Morningstar Direct Platform at about $859.5 million and PitchBook at about $688.7 million, followed by Morningstar Credit at $402.3 million, with wealth, retirement and other segments making up smaller but meaningful portions. The company has a market cap of about $7.5b, placing it firmly in mid cap territory.
Morningstar sits at the crossroads of the SpaceX float story and the Nasdaq 100 reshuffle because its data, indexes and ETF analytics help investors respond to exactly these kinds of index shifts. You are getting a business with strong reported earnings quality, high forecast returns on equity and a P/E that is lower than both the US market and the US capital markets peer group. At the same time, high leverage and softer near term growth expectations add risk if conditions turn or sentiment on information providers cools. That mix of quality, pricing and balance sheet risk is one reason Morningstar may warrant closer attention in any index tracking ETF toolkit, particularly when index rules and constituents are in motion.
Morningstar’s combination of strong reported earnings quality and a lower P/E than key benchmarks could be masking a more complex story around leverage and growth. Get the full context in the 4 key rewards and 1 important warning sign
Build your own quality and valuation shortlist around Morningstar
Morningstar and the two other stocks in this article all came out of a single screen, but the real edge is setting filters that fit how you like to invest. Use our flexible Screener to mix metrics like P/E, quality, balance sheet and risks, or start with any of our curated Investing Ideas for ready made shortlists.
Interactive Brokers Group (IBKR)
Interactive Brokers Group runs a global electronic brokerage platform that lets retail and institutional clients trade stocks, options, futures, forex, bonds, metals and crypto across many markets. The company generates all of its US$6.8b in revenue from its Brokerage segment and has built a broad toolkit around that core, from margin lending to advisor and hedge fund services. With a market cap of about US$151b, Interactive Brokers sits firmly in the large cap broker category.
Interactive Brokers Group sits in the slipstream of the SpaceX float story because it tends to see higher activity whenever volatility spikes around hot stocks or index reshuffles. Record client balances, solid earnings growth and expanding international access, including new markets like Brazil and Korea, give the broker meaningful leverage to higher trading volumes and net interest income when investors reposition around events such as the Nasdaq 100 rebalance. The flip side is that this strength relies on active markets and a funding model built on external borrowing, so any prolonged drop in volatility or sharp shift in rates could matter more here than at some peers. Investors who want the full picture of how Interactive Brokers converts these conditions into earnings and what could upset that equation are missing important details if they stop at the headlines around the SpaceX trade.
Interactive Brokers Group’s combination of record client balances and global reach could be masking a bigger story about how it converts trading spikes into lasting earnings power. Get the full analysis report for Interactive Brokers Group
Cboe Global Markets (CBOE)
Cboe Global Markets runs a global exchange network for options, futures, equities and FX, providing trading, clearing and data services that many ETFs and index products rely on. Most of its revenue comes from options and North American equities, with about $2.7b from Options, $1.7b from North American Equities, $423.7 million from Europe and Asia Pacific, $140.4 million from Futures and $106.4 million from Global FX. The company has a market cap of about $29.7b, putting it in large cap exchange territory.
Cboe Global Markets sits at the heart of the SpaceX float story because it is a key venue for ETF and options trading when index reshuffles trigger heavy repositioning. Rising ETF flows around any Nasdaq 100 rebalance, growth in 0DTE index options and the build out of prediction markets all point to more activity on Cboe’s platforms. This can support earnings resilience even if overall revenue growth slows. The flip side is that analysts still expect revenue to decline over the next few years and the stock already trades above one DCF estimate, so investors are paying up for quality earnings, strong ROE and the potential for higher volumes if events like the SpaceX unlock keep volatility elevated.
Cboe Global Markets sits where ETF flows, 0DTE options and prediction markets all intersect. See how that story fits together in the analysis report for Cboe Global Markets and why one underappreciated pressure point could change the script.
Seeking Alternatives Before Everyone Else
Fresh ideas move fast. While attention stays on SpaceX and index reshuffles, other stocks could be building quiet breakout momentum under the radar for now. Do not get caught watching, consider researching opportunities early.
- Spot income workhorses that can help anchor a portfolio while markets keep moving by checking the hand picked 8 dividend fortresses before the crowd starts chasing yield.
- Explore the structural shift into smarter automation as factories and logistics upgrade by scanning the curated 36 robotics and automation stocks while pricing still reflects yesterday’s expectations.
- Review potential power bottlenecks as electrification expands by using the focused 37 power grid technology and infrastructure stocks before these stories move from quiet accumulation to wider attention.
This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.
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