XOVR ETF Increases Investment in SpaceX, Expanding Its Private Equity Exposure

3 min read | February 02, 2025 09:24 PM EST | By Team Kalkine Media

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XOVR ETF Increases Investment in SpaceX, Expanding Its Private Equity Exposure — Image source: Shutterstock

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Highlights:

Increased Investment in SpaceX: The XOVR ETF has raised its SpaceX stake by $13 million, elevating its total holding in the company to 11% of the fund’s AUM.

Focused on Entrepreneurial U.S. Large-Cap Companies: The XOVR ETF utilizes the ER30TR Index, which is based on ERShares' proprietary Venture Capital Model to invest in high-growth entrepreneurial companies, including pre-IPO opportunities.

Media Attention and Market Insights: The ETF has gained considerable media attention, including a Wall Street Journal article that highlighted the fluctuating value of SpaceX shares, alongside an analyst’s prediction that the fund could strategically trade portions of its stake.

The XOVR ETF (NASDAQ:XOVR), managed by ERShares, has reinforced its position in SpaceX, its largest holding, with an additional $13 million investment. This move raises SpaceX's allocation in the fund to 11% of its assets under management (AUM), further solidifying the ETF's strategic emphasis on private equity.

The XOVR ETF stands out in the financial market for being the only exchange-traded fund offering investors direct exposure to private equity, particularly in the high-growth technology and space sectors. By increasing its investment in SpaceX, the fund is not only adding to its exposure to one of the most innovative companies in space exploration but also reinforcing its broader strategy to tap into transformative entrepreneurial companies.

ERShares, the firm behind XOVR ETF, employs a unique approach to investment through the ER30TR Index, which tracks the performance of large-cap companies demonstrating entrepreneurial traits. The fund's strategy was crafted using ERShares’ Proprietary Venture Capital Model, developed over the last two decades by Dr. Joel Shulman, the firm’s CEO and CIO. Dr. Shulman, who played an early role in identifying today’s leading tech companies—referred to as the "Magnificent 7"—is now focused on uncovering the next wave of disruptive companies. His keen eye for high-potential ventures sometimes leads to investments even before companies go public (pre-IPO).

SpaceX remains a central player in the fund’s strategy. With its latest investment, ERShares continues to position itself at the forefront of the aerospace industry, capitalizing on the massive growth potential of private space companies. According to recent coverage from the Wall Street Journal, SpaceX shares have been trading within a broad price range from $115.50 to $209.51, reflecting strong investor confidence in the company’s future prospects.

Analysts suggest that the XOVR ETF could capitalize on its SpaceX holdings by trading smaller portions of its stake intermittently, potentially publishing the resulting prices to offer more market insights and liquidity. This could provide a unique way for the ETF to navigate the volatile yet promising private equity market.

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