The SpaceX IPO Trade: 4 Mutual Funds That Could Win Big

Founded by Elon Musk in 2002, Space Exploration Technologies Corp., or SpaceX, is set to debut on the Nasdaq under the ticker (SPCX), in what’s likely to be a record initial public offering (IPO). The IPO will put the world's richest person at the head of two independent publicly traded companies, each valued at more than $1 trillion. The other entity is the electric vehicle company Tesla TSLA, which has a market cap of about $1.6 trillion.Headquartered at the Starbase development site in Starbase, TX, the IPO is led by Goldman Sachs. This mega IPO is likely to be the first of three potential mega offerings this year, with OpenAI and Anthropic both eyeing the public markets.SpaceX has three business units: spaceflight, telecommunications and artificial intelligence (AI). The bulk of SpaceX’s revenues comes from Starlink, its satellite internet service powered by a network of about 10,000 satellites, as well as Musk’s artificial intelligence startup xAI, which previously acquired X, the social media platform formerly known as Twitter.SpaceX said in its prospectus that it is identifying and creating trillion-dollar market opportunities outside of its existing businesses. In its June filing with the Securities and Exchange Commission, SpaceX stated that it aims to raise $75 billion by offering more than 555 million shares at an expected price of $135 each. The fundraising total could be higher if demand supports a higher initial offering price.Mutual funds like Baron Focused Growth Fund Retail BFGFX, Fidelity Growth Company Fund Retail FDGRX, Fidelity Blue Chip Growth Fund FBGRX and Fidelity Contra Fund FCNTX are uniquely positioned because they belong to an elite club. These funds already own massive, multi-billion-dollar private stakes in SpaceX, which has remained private for so long.Retail investors are unable to buy its shares on standard stock exchanges. However, a few mutual fund managers used regulatory loopholes to buy private equity inside everyday mutual funds. When SpaceX goes public, these funds will see an instant, dramatic surge in their Net Asset Value (NAV).We have thus selected four mutual funds that have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, and minimum initial investments within $5000. The funds carry a low expense ratio. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).Baron Focused Growth Fund Retail has been managed by billionaire growth investor Ronald Baron since June 30, 2008. BFGFX has made SpaceX one of its absolute largest bets, making up a staggering 15.6% of the fund’s net assets as of May 31, 2026.BFGFX’s three-year and five-year annualized returns are nearly 21.5% and 12%, respectively. BFGFX has a Zacks Mutual Fund Rank #2 (Buy) and an annual expense ratio of 1.31%.Fidelity Growth Company Fund Retail has been run by Steve Wymer since Jan. 1, 1997. The fund maintained a brave 2.6% allocation in SpaceX under its industrials segment as of April 30, 2026. FDGRX holds some of the best growth equities in the world.FDGRX’s three-year and five-year annualized returns are 34.7% and 18.4%, respectively. FDGRX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.69%.Fidelity Blue Chip Growth Fund has been managed by Sonu Kalra since July 1, 2009. This fund holds 3.3% of its net assets in SpaceX as of April 30, 2026.FBGRX’s three-year and five-year annualized returns are almost 33% and 16.4%, respectively. FBGRX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.72%.Fidelity Contra Fund, managed by the legendary William Danoff, is one of the largest active mutual funds in existence. SpaceX sits comfortably holding around 4.7% of its net assets as of April 30, 2026.FCNTX has three-year and five-year annualized returns of 28.3% and 15.1%, respectively. FCNTX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.74%.Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks