ERShares Crossover ETF (XOVR) Announces a $20M Position in SpaceX--Top Holding

Rhea-AI Summary

ERShares Crossover ETF (XOVR) has acquired an additional $10M investment in SpaceX, bringing its total position to over $20M (including 37% appreciation). SpaceX now represents 12.3% of XOVR's portfolio, making it the fund's top holding. XOVR, relaunched on NASDAQ on August 29, 2024, is pioneering a new ETF model by combining public and private equities in a single, liquid fund.

The ETF allocates over 85% to the Entrepreneur 30 Total Return Index (ER30TR) and up to 15% to private equities. The ER30TR Index has delivered a total return of 2023% as of December 11, 2024, outperforming major indices like the S&P 500 (640%), Dow 30 (589%), and Russell 1000 Growth (965%). The fund offers daily liquidity, transparency, and no minimum investment requirements.

Positive

• SpaceX investment appreciated 37% in less than 10 days
• ER30TR Index outperformed major indices with 2023% total return
• Daily liquidity and NAV pricing unlike closed-end funds trading at 10x NAV
• No minimum investment requirement for private equity access

Negative

• None.

Insights

Financial Analyst

This ETF launch represents a significant breakthrough in democratizing private equity investments. The $20M SpaceX position at 12.3% portfolio weight, combined with the fund's unique structure offering daily liquidity and NAV-based pricing, creates a compelling investment vehicle. The fund's hybrid approach of 85% allocation to the ER30TR index and up to 15% to private equities provides a balanced exposure to both established and pre-IPO companies. The ER30TR's historical outperformance of 2023% versus the S&P 500's 640% demonstrates strong track record in identifying growth opportunities.

Market Research Analyst

The XOVR ETF's innovative structure addresses a important market gap by providing retail investors unprecedented access to private equity investments. The SpaceX position appreciation of 37% in under 10 days highlights the potential upside of pre-IPO investments. Most notably, XOVR's NAV-based pricing structure offers a significant advantage over closed-end funds trading at 10x NAV premiums. The Entrepreneur Factor® model's success with early identification of major tech players like Nvidia, Amazon and Tesla adds credibility to their investment methodology.

Groundbreaking, First and Only ETF, Revolutionizes Private Equity Access for Retail Investors

NEW YORK, Dec. 12, 2024 /PRNewswire/ -- EntrepreneurShares (ERShares), a trailblazer in entrepreneurial and disruptive investment strategies, has made history with the acquisition of an additional $10M investment in SpaceX.  This purchase follows last week's inaugural investment, bringing the total investment to over $20m (including the recent 37% appreciation). SpaceX now represents the top holding in its ERShares Crossover ETF (Nasdaq: XOVR) with a 12.3% overall weight. XOVR is heralding a new era for ETFs by blending public and private equities into a single, liquid fund. Relaunched on NASDAQ on August 29, 2024, XOVR uniquely provides investors with access to private equity—an asset class traditionally reserved for institutional and accredited investors.

XOVR democratizes private equity by combining daily liquidity, diversification, and ease of access for both retail and institutional investors. Importantly, it also provides daily pricing at Net Asset Value, distinguishing XOVR from some closed-end funds, that hold the same SpaceX investment yet trade at levels more than 10x the Net Asset Value. 

A Milestone in Private Equity Access
Dr. Joel Shulman, Founder & CIO of ERShares and Babson College professor, expressed excitement over the SpaceX acquisition:
"We are thrilled to announce an additional purchase of SpaceX making it, by far, the largest weight (12.3%) in XOVR. This investment follows our purchase last week, that increased 37% in less than 10 days. Private equity has historically been an exclusive domain, limited by illiquidity, lock-ups, price premiums, and significant barriers to entry. XOVR breaks these barriers, offering unprecedented access to a previously untouchable asset class without any premium to net asset value."

XOVR allocates over 85% of its holdings to the Entrepreneur 30 Total Return Index (ER30TR) and up to 15% to private equities like SpaceX, delivering a balanced portfolio that capitalizes on entrepreneurial growth. Notably, the strategy of the ER30TR was originally based on a VC model applied to publicly traded securities.  The inclusion of private equity now extends the existing investment thesis.

Demonstrated Performance
The proprietary ER30TR Index, founded in 2005, has consistently outperformed major indices with a total return of 2023% (as of 12/11/2024), compared to:

• S&P 500: 640%
• Dow 30: 589%
• Russell 1000 Growth: 965%

Disclosure: While past performance does not guarantee future results, ERShares' innovative approach has an established 20 year track record of identifying exceptional growth opportunities.

XOVR: The ETF for Visionary Growth Investors
Key features of XOVR include:

• Unmatched Access: Exposure to both public and private equity within a single ETF.
• Daily Liquidity: Tradeable on major U.S. brokerages, providing flexibility uncommon in private equity.
• Transparency: Valued at net asset value (NAV) for accurate pricing and value. Some closed-end funds trade at levels that are 10x NAV, making it appreciably more challenging for long-term profit potential.
• Ease of Entry: No minimum investment, making private equity accessible to all investors.

Eva Ados, COO & Chief Investment Strategist at ERShares, emphasized XOVR's transformative impact:
"XOVR represents a paradigm shift in the ETF market, combining public and private equities like SpaceX to address a critical unmet need. The inclusion of privates like SpaceX further enhances its appeal, providing retail investors with a rare opportunity to gain exposure to pre-IPO growth."

A Philosophy Rooted in Entrepreneurial Excellence
ERShares' proprietary Entrepreneur Factor® (EF) model, built on 25 years of research at Babson College (#1 in entrepreneurship), evaluates over 18 attributes of entrepreneurial leadership, including management quality, innovation, and profitability. This model has been instrumental in identifying early-stage opportunities like Nvidia, Amazon, and Tesla.

With the addition of private equities XOVR ETF now enables retail investors to participate in the wealth creation early in the company's life cycle.  This is the most dynamic, highest growth phase of a company's life cycle when wealth creation accelerates.

"By investing in entrepreneurial companies, we're investing in the future of the global economy," said Dr. Shulman. "With XOVR, we're focused on the next wave of 'Magnificent 7' companies poised to disrupt industries and drive growth. Institutional and high net worth investors have traditionally held an advantage over retail investors.  Now, as the rich get richer, retail investors can get richer too."

For more information, visit entrepreneurshares.com.

Disclosures:
Investing involves risk, including potential loss of principal. Past performance is no guarantee of future results.

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SOURCE ERShares

FAQ

What is the current SpaceX position value in XOVR ETF?

XOVR ETF holds a $20M position in SpaceX (including 37% appreciation), representing 12.3% of the fund's portfolio as its top holding.

How has the ER30TR Index performed compared to major market indices?

As of December 11, 2024, the ER30TR Index has achieved a 2023% total return, significantly outperforming the S&P 500 (640%), Dow 30 (589%), and Russell 1000 Growth (965%).

What is the asset allocation structure of XOVR ETF?

XOVR allocates over 85% of its holdings to the Entrepreneur 30 Total Return Index (ER30TR) and up to 15% to private equities like SpaceX.

When was XOVR ETF relaunched on NASDAQ?

XOVR ETF was relaunched on NASDAQ on August 29, 2024.

What are the key advantages of XOVR ETF over traditional private equity investments?

XOVR offers daily liquidity, NAV pricing, no minimum investment requirement, and combines both public and private equities in a single tradeable fund.