TL;DR: What's the best way to handle the SpaceX IPO when your portfolio is primarily composed of index funds that are exposed to it? Is there something similar to an index fund that explicitly will not include SpaceX/OpenAI/Anthropic IPOs?
Background:
I invest substantially in my IRAs and 401ks. While I do own some FAANG shares and a couple other blue chip stocks, the majority of my holdings are in S&P 500 index funds.
I am not an active investor. I'm not trying to beat the market, and I am self-aware enough to know that I do not have the time or skill required. I am investing for retirement (20-30 years away), and index funds have delivered the consistent, relatively stable returns; and that's really all I care about.
Normally, I don't care about IPOs; I just stick to my long-term strategy, I generally don't try to time the market.
But the SpaceX IPO, and upcoming OpenAI / Anthropic IPOs, trouble me.
The normal rules for getting included in an index fund have been waived. These companies aren't profitable. And they have absolutely massive valuations.
Historically, large IPOs almost always underperform the market by a significant degree.
Accordingly, I don't want to get hosed by these massive, unprofitable companies that are quite possibly overvalued by a substantial margin.
I want to pull out of my index funds for the next 6-12ish months while the dust settles, before eventually moving back in once the IPO price has settled into a more "normal" price.
I don't just want to keep my money in cash, though; I still want to invest in broad indexes, just not ones exposed to SpaceX, etc.
I was thinking some sort of target date fund, but it's hard to find information where a fund says specifically "I'm not buying these IPO shares."
Basically, I want an index fund, just not one that's exposed to these dubious IPOs. If anyone has advice on where to look, I'd appreciate it.
If you've read this far, thank you for taking the time!
Edit: For everyone accusing me of some sort of secret agenda to hate on Elon Musk...I'm really not. I honestly don't care about him.
He doesn't seem like a very nice guy, but "nice guy" is not a criteria I base my investment strategy on. I invest in index funds... therefore technically am invested in all sorts of terrible companies/people, it's never stopped me before.
Not to mention, I also discussed Anthropic, and OpenAI...this wasn't even just about SpaceX.
I am genuinely just asking for advice. There's nothing more to it. If I wanted to complain about some random CEO, there's a million places I could do that...but I'm not, because it's just not even something I think about. Take this for what you will.