Nasdaq rules will expedite inclusion of SpaceX, Anthropic, and OpenAI into index funds, prompting investors to consider value-focused ETFs as an alternative.

SpaceX plans to raise $75 billion at a nearly $1 trillion valuation, described as the largest IPO in history. Anthropic is expected to IPO ahead of OpenAI, with both companies expected to go public later this year.

The Vanguard Value ETF holds 309 companies and excludes growth-focused stocks like Nvidia, Alphabet, Apple, Microsoft, Amazon, Broadcom, Tesla, Meta Platforms, and Eli Lilly. Its top holdings include JPMorgan Chase, Berkshire Hathaway, and ExxonMobil, giving it more exposure to financials, industrials, healthcare, energy, consumer staples, utilities, real estate, and materials sectors.

The Vanguard Value ETF has a 0.03% expense ratio, matching the Vanguard S&P 500 ETF, and offers a 1.9% dividend yield compared to 1% for the Vanguard S&P 500 ETF. The fund will not automatically add SpaceX, Anthropic, and OpenAI as other index funds are expected to do.