ERShares Crossover ETF (XOVR) Announces SpaceX as Its Top Holding

Rhea-AI Summary

ERShares has announced SpaceX as the top holding in its Crossover ETF (XOVR), marking its first private equity investment. Launched on NASDAQ in August 2024, XOVR combines public and private equities in a single, liquid fund with an AUM cap of $500 million. 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 2036% since 2005, outperforming major indices. XOVR offers daily liquidity, transparency, and no minimum investment, making private equity accessible to retail investors.

Positive

• First ETF to provide retail investors access to both public and private equity in a single liquid fund
• Strong historical performance with ER30TR Index showing 2036% total return since 2005
• Secured SpaceX as top holding, providing rare pre-IPO investment access
• Daily liquidity feature unusual for private equity investments
• AUM cap of $500 million helps maintain investment quality

Negative

• private equity allocation (up to 15% of portfolio)
• Past performance does not guarantee future results

Insights

Financial Markets Expert

This groundbreaking ETF development represents a significant shift in private equity accessibility. The ERShares Crossover ETF (XOVR) introducing SpaceX as its top holding, with an $500 million AUM cap, marks a revolutionary approach to democratizing private equity investment. The fund's structure, allocating 85% to the ER30TR Index and up to 15% to private equities, provides a balanced exposure to both public and private markets.

The historical performance of the ER30TR Index is remarkable, delivering a 2036% total return compared to the S&P 500's 640%. The daily liquidity feature and absence of investment minimums eliminate traditional private equity barriers, while the NAV-based pricing ensures transparency. This innovation could reshape retail investor access to high-growth private companies previously reserved for institutional investors.

Investment Product Analyst

The XOVR ETF's structure introduces a novel solution to private equity investment challenges. By combining public and private equities in a liquid, exchange-traded format, it addresses key barriers that typically restrict retail investor participation. The proprietary Entrepreneur Factor® model's track record in identifying successful companies like Nvidia and Amazon adds credibility to their selection process.

The fund's $500 million AUM cap is strategically important - it ensures maneuverability in private markets while maintaining liquidity. This innovation could potentially spark a new category of hybrid ETFs, transforming how retail investors access private markets. The daily liquidity feature is particularly noteworthy, as it solves the traditional lock-up period challenge associated with private equity investments.

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

NEW YORK, Dec. 3, 2024 /PRNewswire/ -- EntrepreneurShares (ERShares), a trailblazer in entrepreneurial and disruptive investment strategies, has made history with the acquisition of SpaceX as the top holding in its ERShares Crossover ETF (Nasdaq: XOVR). This marks XOVR's first private equity investment, 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.

With assets under management (AUM) that will be capped at $500 million, XOVR democratizes private equity by combining daily liquidity, diversification, and ease of access for both retail and institutional investors.

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 our inaugural private equity purchase, making SpaceX the largest weight in XOVR. Private equity has historically been an exclusive domain, limited by illiquidity, lock-ups, and significant barriers to entry. XOVR breaks these barriers, offering unprecedented access to a previously untouchable asset class."

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.

Demonstrated Performance
The proprietary ER30TR Index, founded in 2005, has consistently outperformed major indices with a total return of 2036% (as of 12/1/2024), compared to:

• S&P 500: 640%
• Dow 30: 599%
• Russell 1000 Growth: 938%

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.
• 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 to address a critical unmet need. The inclusion of SpaceX further enhances its appeal, providing retail investors 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 maximum AUM cap for ERShares Crossover ETF (XOVR)?

The ERShares Crossover ETF (XOVR) has an assets under management (AUM) cap of $500 million.

When was ERShares Crossover ETF (XOVR) launched on NASDAQ?

XOVR was relaunched on NASDAQ on August 29, 2024.

What percentage does XOVR allocate to private equity investments?

XOVR allocates up to 15% of its portfolio to private equity investments.

What was the total return of the ER30TR Index as of December 2024?

The ER30TR Index achieved a total return of 2036% as of December 1, 2024.