I have some concerns on Fidelity's FNILX index and how Fidelity is going to navigate the Space X situation.
Fidelity is a [pre-IPO investor](https://www.thewealthadvisor.com/article/fidelity-fund-increases-valuation-equity-stake-musks-x) ([another link](http://bloomberg.com/news/articles/2015-01-20/musk-s-spacex-sells-10-stake-to-google-fidelity-for-1-billion)), an IPO distribution partner, owner of the FNILX index, and manager of the fund buying.
The FNILX is S&P 500 like but not fully. There is[ no profitability requirement](https://institutional.fidelity.com/app/proxy/content?literatureURL=%2F9905219.PDF) unlike the[ S&P](https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-us-indices.pdf).
I have seen other index providers make adjustments in their methodology just to include SpaceX such as the [Nasdaq](http://nasdaq.com/newsroom/nasdaq100-index-methodology-update-why-now) and the [Russell](http://cnbc.com/2026/06/05/spacex-blocked-from-early-us-benchmark-index-entry-as-sp-reaffirms-existing-rules.htm) indexes. S&P has decided [to hold firm](http://spglobal.com/spdji/en/documents/indexnews/announcements/20260604-1483731/1483731_spdji-us-indices-megacaps-results-20260604.pdf). I have no idea what FNILX will do as it [is subject to ](https://institutional.fidelity.com/app/proxy/content?literatureURL=%2F9905219.PDF)discretion. Even after calling them up.
Fidelity has drastically [changed its rules for SpaceX](https://www.reddit.com/r/fidelityinvestments/comments/1twmxay/interested_in_participating_in_the_latest_ipo_at/) by lowering its threshold for IPO buyers from $500k to $2k, and the current SpaceX valuation is based on very lofty assumptions in a niche, infant industry- the antithesis of passive index investing.
