The Vanguard Total Stock Market ETF (VTI) Now Holds 18,738,438 Shares of SpaceX Stock. Here's What That Means for Investors.

Investment management firm Vanguard recently updated the holdings of many of its index funds and exchange-traded funds (ETFs).

The second-largest ETF by net assets, the Vanguard Total Stock Market ETF (NYSEMKT: VTI), holds 18,738,438 shares of Space Exploration Technologies (NASDAQ: SPCX) -- worth $3.2 billion as of June 30. That's 3.4% of the 555 million shares that SpaceX sold for $135 from its initial public offering (IPO). Granted, SpaceX also raised another $10.7 billion from underwriters that exercised options to buy shares. But the key takeaway is the speed and size at which the ETF gobbled up SpaceX stock.

Here's what investors need to know about SpaceX's impact on well-known low-cost ETFs, and ways they can position their portfolio to get exposure to SpaceX or avoid it entirely.

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