Nov 1, 2026
If you hold popular Canadian-listed ETFs such as XEQT, VFV or XQQ you may have exposure to companies connected to SpaceX. As Elon Musk’s firm faces scrutiny over its role in the war in Ukraine, Canadian investors may want to take a closer look at what their ETFs actually own.
Starting mid-October, Ukrainian officials said SpaceX had capped speeds on its military-grade Starlink service, causing drones at the front to lose connection. After a week of conflicting accounts from officials in Washington, D.C. and Starlink, the government division of SpaceX, Elon Musk acknowledged that SpaceX did, in fact, throttle Ukraine’s internet connection.
Advertisement
While Ukrainian President Volodymyr Zelenskyy has confirmed that connection speeds are now back to normal, this recent international situation is a reminder for investors — the impact one person can have on a publicly-traded trillion-dollar company.
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
Why can’t SpaceX shareholders rein in Musk?
Why can’t SpaceX shareholders hold Elon Musk accountable? The answer lies in who controls the voting power. When SpaceX listed on Nasdaq in June, Musk owned about 42% of the company but controlled roughly 82% of the voting power, according to the BBC.
That gap comes from a dual-class share structure. Investors who bought in the initial public offering (IPO) received Class A shares that came with one vote each. Insider-held Class B shares — what Musk holds — carry 10 votes for each share held.
Before the listing, Musk held 85.1% of combined voting power, according to PitchBook, a private-markets research firm.
This setup gives Musk “substantial value at the expense of public investors,” writes governance researchers Lucian Bebchuk and Kobi Kastiel, in the Harvard Law School Forum on Corporate Governance.
In practice, outside shareholders can’t realistically outvote him.
Must Read
- A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change
- Here are 5 'must-haves' that Canadians constantly overpay for. How many of these are sabotaging your budget every single month?
- Here are the 5 biggest differences between rich and poor Canadians — which side do you fall on?
Join 20,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
How did the Starlink fight affect SpaceX stock?
Starlink is central to SpaceX’s financial success, not just a Musk side business. According to the company’s filing, the satellite internet service generated nearly 70% of SpaceX’s revenue in 2025, serving approximately 10.3 million subscribers across 164 countries.
So, how did investors respond to the current controversy?
Advertisement
- Oct. 15: SpaceX (NASDAQ: SPCX) closed at US$148.62, down 2.33% from US$152.16, according to FinanceFeeds.
- Oct. 20: The Wall Street Journal reported that Musk had personally ordered the slowdown, citing U.S. officials and other sources. Musk had earlier said such limits were decided by the U.S. military and the president.
- Oct. 26: Barron’s reported that SpaceX shares had risen 1% over the preceding week, following strong third-quarter results, despite the controversy.
What this suggests is the initial selloff did not turn into a sustained decline; however, it has prompted U.S. lawmakers from both parties to demand answers. Republican Rep. Brian Fitzpatrick called it “a very, very serious matter” as members of Congress pushed for an investigation. In Canada, Prime Minister Mark Carney said Canadians don’t want to be “reliant on one provider that may change their view.”
How much SpaceX do Canadian ETF investors own?
So, how heavily invested are Canadian investors? More than you’d realize. Canadians hold more than CA$19 billion in Nasdaq-100 ETFs, according to TD Securities research cited by The Globe and Mail.
SpaceX joined the Nasdaq-100 in July, so funds such as iShares’ XQQ and BMO’s ZQQ hold it, typically at a weight under 1%. Vanguard’s VUN, which also sits inside the all-in-one VEQT, tracks a U.S. total-market index — and VEQT added SpaceX five trading days after its debut.
S&P 500 ETFs don’t hold SpaceX yet because the index requires a record of profits. But this could change — and quickly.
Some Canadians also have exposure through pensions. For instance, the Ontario Teachers’ Pension Plan was among SpaceX’s pre-IPO backers.
What should investors do?
Owning a sliver of SpaceX through an index fund isn’t an endorsement. It’s a by-product of how the index is built. But investors still have choices:
- Check your ETF’s holdings page for the ticker SPCX and its current weight
- If concentration worries you, keep perspective: a sub-1% position is unlikely to make or break a diversified portfolio
- If your concern is values, S&P 500 ETFs currently exclude SpaceX, though that may not last
- Read your fund provider’s proxy-voting policy, since the issuer votes your shares
- Mark the lock-up calendar: more pre-IPO shares can be sold around early December, while Musk’s 366-day lock-up runs to June 2027
- Think twice before using single-stock SpaceX ETFs to bet on a rebound
Index investing means owning the market as it is, including companies that may not align with your current values or investing goals.
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Here are 8 solid money moves that could free up real cash every month — here's where to start
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
Romana King, Senior Editor at Money.ca, also writes for various North American publications and the RKHomeowner blog. Her book, House Poor No More, is an Amazon bestseller and five-time award winner, including the 2022 New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award.
