Some investors are questioning whether Elon Musk's SpaceX belongs in their 401(k) plans. The debate centers on ethical concerns and financial risks associated with the private space company.
Retirement savers who want to exclude SpaceX from their portfolios face limited options due to its non-public status. While most 401(k) plans offer a menu of mutual funds and ETFs, individual stocks like SpaceX are not directly available. However, some funds may hold SpaceX through private placements or special vehicles.
To effectively avoid SpaceX, investors can scrutinize their plan's holdings. For example, certain technology or growth funds might include SpaceX as a private investment. Switching to index funds or ESG (environmental, social, governance) funds that screen out controversial companies could be an alternative.
It's important to review your plan's investment options and, if necessary, speak with a financial advisor to align your portfolio with your values without unintended exposure to SpaceX.