> But doing so would be a fair amount (by index standards) of overhead and hassle.

Any product provider, like Blackrock, would jump at the opportunity to sell them an S&P499 given the scale of those pension funds.

> Plus they'd put themselves in the crosshairs of a whole range of activists...

Not to mention putting their own jobs on the line if SpaceX outperformed the rest of the index.

The first point, that an S&P499 is easy for them but they won't do it, means they have no conviction. The second point (where I agree with you), that it's obvious we-tried CYA lacking any real teeth that'll go nowhere, means they have no courage.

They're an asset manager: put your money where your mouth is. If their hypothesis is that SpaceX governance will be bad then short the bloody thing and use the proceeds to buy the S&P499. It's not a complicated trade given their industry position and ability to call third-party providers.