Investors chasing pre-IPO SpaceX exposure through an ETF wrapper usually narrow the field to two names: ERShares Private-Public Crossover ETF (NASDAQ:XOVR) and the ARK Innovation ETF (NYSEARCA:ARKK).
ERShares Private-Public Crossover ETF (XOVR) offers retail investors liquid, pre-IPO exposure to SpaceX, which constitutes 22% of the fund. XOVR uses a mark-to-market valuation for private holdings like SpaceX, minimizing the chance for 'cheap' pre-IPO entry but capturing upside if SpaceX rallies post-IPO. The ETF is highly concentrated, with over 60% in its top 10 holdings and significant sector exposure to Industrials and Technology.
The pitch for ERShares Private-Public Crossover ETF (NYSEARCA:XOVR) is simple.
The ERShares Private-Public Crossover ETF (NYSEARCA:XOVR) sits at an awkward crossroad heading into summer 2026.
ERShares Private-Public Crossover ETF (XOVR) offers unique access to both public and private firms, including high-profile names like SpaceX and Anduril. The fund employs a proprietary 'entrepreneur factor' weighting model, which has had periods of out- and underperformance of the broader market, and led to a tech-heavy portfolio. XOVR's inclusion of private stocks provides exposure typically unavailable to most investors, enhancing portfolio diversification. However, recent changes have reduced the private firm exposure from 10%+ to under 3%.
XOVR grabs attention with a 15% exposure to private companies through SPVs. However, it makes you forget that 85% is actually in publicly traded companies, with a strong tech-edge focus. Which is why, after the 2024 update, its performance closely tracks that of the VGT ETF.
Last week, The Wall Street Journal reported that the Trump administration is likely to issue an executive order that would open the retirement market to private assets.
XOVR ETF provides unique access to private companies like SpaceX within an ETF structure, but transparency around its 'Entrepreneur Factor' is lacking. The fund's proprietary ER30TR Index claims strong outperformance, yet long-term results from similar strategies have been mediocre. Frequent strategy changes, potential survivorship bias, and ETF structure risks with illiquid private holdings raise caution for investors.
SpaceX and Starlink are not publicly traded. That's OK for accredited investors. But what about all the other interested investors? You might consider investing in funds like ARKVX, BFGFX, and XOVR, which hold significant SpaceX stakes, or companies partnering with SpaceX. I believe XOVR is the most promising approach. It enjoys the possibilities of both publicly traded and pre-IPO firms.
The Crossover ETF came to market in August 2024, after changing from the Entrepreneur ETF, which came to market in 2017. Since its re-tooling, it has become a vehicle for public and private crossover investment. The fund now owns its largest position in SpaceX. This presents opportunities for investors to make an investment in SpaceX via XOVR, and reap the rewards of that investment without being accredited.
Eva Ados takes the long view on markets and says that many companies see the best returns while private. She discusses the launch of ERShares' Entrepreneur Private-Public Crossover ETF (XOVR) to allow retail investors access to private markets, with top holdings including SpaceX and public heavyweights like Meta (META) and Nvidia (NVDA).
The ERShares Private-Public Crossover ETF uniquely combines Private Equity exposure with public stock market investments, focusing on growth and value stocks of large-cap companies. This ETF offers a novel strategy for investors seeking a blend of private equity and public market exposure, emphasizing both growth potential and social responsibility. This new strategy replaced the old pure equity one last August, so investors should ignore data before then.