The Invesco QQQ Trust is rebalancing its portfolio today following the official inclusion of Space Exploration Technologies (SpaceX) into the Nasdaq-100 index.
The ETF must purchase an estimated $4.3 billion worth of SpaceX shares to accommodate the new constituent.
To fund this acquisition, the trust is trimming positions in all other holdings, including tech giants Apple, Microsoft, and Nvidia.
Adding the high-growth, currently unprofitable company increases the fund's exposure to valuation and execution risks.