u/FermentedTh0ughts

How would funds like SPTM and SPHQ actually handle major future IPOs (e.g., SpaceX, OpenAI, Anthropic once public)?

Do broad market ETFs end up holding these mainly due to index inclusion rules, even if valuations are stretched at IPO?

And for active ETFs like DFUS or AVUS, is there generally more caution around buying into high-valuation IPOs, or do they eventually just gain exposure as positions scale?

I’m considering trimming 100% SPTM in my non taxable account (about 40% of my portfolio) and reallocating toward SPHQ and possibly some active funds like DFUS or AVUS , mainly to avoid being too exposed to IPO-driven hype cycles.

Appreciate any insights on how this typically plays out in practice?

How would funds like SPTM and SPHQ actually handle major future IPOs (e.g., SpaceX, OpenAI, Anthropic once public)?

Do broad market ETFs end up holding these mainly due to index inclusion rules, even if valuations are stretched at IPO?

And for active ETFs like DFUS or AVUS, is there generally more caution around buying into high-valuation IPOs, or do they eventually just gain exposure as positions scale?

I’m considering trimming 100% SPTM in my non taxable account (about 40% of my portfolio) and reallocating toward SPHQ and possibly some active funds like DFUS or AVUS , mainly to avoid being too exposed to IPO-driven hype cycles.

Appreciate any insights on how this typically plays out in practice?