I have an ETF that follows the MSCI World UCITS ETF. I asked google how the SpaceX scam will affect my etf, and this is what I got:
*SpaceX will likely be added to the MSCI World index following its initial public offering (IPO). However, the Weighting Will Likely Be Small: Even though SpaceX is estimated to reach a multi-trillion-dollar valuation, its impact on broad index funds will be heavily mitigated by its "free float" (the percentage of shares actually available for public trading). If the float is small (e.g., around 5%), MSCI estimates SpaceX would rank further down in the benchmark rather than automatically entering the top 10 list.*
I like my ETF, it has performed well, and I think it's solid. SpaceX may lose 50% of its value, but if it enters at no. 10, it would be just below Tesla (ironically), with a weight of 1%, so I am not going to lose so much?
Am I interpreting this correctly?