ERShares XOVR ETF Expands Access to High-Growth Private Companies and Sets a New Standard for Private Equity Valuation in ETFs
Rhea-AI Summary
ERShares announced developments for its XOVR ETF, the first exchange-traded fund incorporating private equity in its portfolio. The ETF currently holds a 10% position in SpaceX and provides exposure to pre-IPO companies like Klarna.
The fund aims to democratize retail investor access to private companies that are staying private longer, addressing the growing gap between private and public market opportunities. Chief Investment Strategist Eva Ados highlighted how the current IPO landscape limits retail investor participation in significant wealth-creation events.
The ETF employs a structured valuation methodology for private equity holdings, adjusting based on tender offers, IPOs, private transactions, and market movements. Dr. Joel Shulman, ERShares' Founder and CIO, emphasized their commitment to maintaining transparent and consistent valuation practices while providing investors access to high-growth companies before public listings.
Positive
- First ETF to provide retail access to private equity investments
- 10% portfolio allocation to high-profile SpaceX holding
- Access to pre-IPO companies like Klarna
- Structured valuation methodology for private holdings
Negative
- Valuation risks due to private company holdings
- real-time pricing data for private investments
- Dependency on market-driven price discovery mechanisms
XOVR ETF: Bridging the Gap Between Private and Public Markets
In a recent interview on Fox Business, Eva Ados, Chief Investment Strategist at ERShares, discussed the growing issue of private companies remaining private longer and limiting access for retail investors.
"As the IPO landscape evolves, many high-profile companies, including SpaceX, are delaying their public offerings. This limits access to only accredited and institutional investors, leaving retail investors out of some of the most significant wealth-creation events," said Ados. "Some industry players prefer to keep private equity out of reach for retail investors, reinforcing a system where only institutional and accredited investors can benefit. At ERShares, we believe in democratizing access to these opportunities, ensuring that everyday investors can participate in the growth of tomorrow's industry leaders before they go public."
A New Era of Private-Public Investing with XOVR
Opportunities for investors to access high-potential ventures at IPO valuations of around
"With private companies delaying IPOs, retail investors face increasing barriers to these high-growth opportunities. Our XOVR ETF is designed to bridge this gap, providing investors access to promising companies like SpaceX, along with exposure to companies such as Klarna, before they reach public markets," said Dr. Joel Shulman, Founder and CIO of ERShares.
Enhancing Private Equity Valuation Standards in ETFs
ERShares remains committed to adhering to industry best practices in valuation methodologies for private equity investments held within ETFs. XOVR's pricing framework follows structured, research-backed principles to ensure consistency and transparency in valuation practices.
"Valuing private equity within an ETF requires a rigorous, multi-factor approach that accounts for market-driven price discovery mechanisms," Dr. Shulman explained. "We adjust valuations based on tender offers, IPOs, ERShares' private transactions at new price levels, and significant market movements with volume and activity. Our team continuously monitors these holdings using diverse, verified data sources to ensure our net asset value (NAV) accurately reflects real market dynamics while maintaining compliance with industry valuation standards."
ERShares continues to lead in private market investing and ETF management, providing investors with access to high-growth companies before they go public. Acknowledging the evolving landscape of private market data, the firm remains open to refining its valuation methodologies as more reliable real-time pricing emerges.
The Future of Investing: Expanding Access to Private and Public Markets
As ERShares continues to expand access to pre-IPO investments, with the XOVR ETF, it remains committed to providing investors with exposure to high-growth companies through a disciplined and research-driven investment approach.
"We continue to provide evidence of how this private-public model works," added Dr. Shulman. "Our approach will soon become clear as upcoming IPOs unfold, reinforcing the value of integrating high-growth private firms into a diversified portfolio. The future of investing is no longer just public or private—it is both."
Past performance is no guarantee of future results, please refer to the disclosures below: https://entrepreneurshares.com/disclosures/
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SOURCE ERShares
FAQ
What percentage of SpaceX does the XOVR ETF currently hold in its portfolio?
How does the XOVR ETF value its private equity holdings?
Which pre-IPO companies are currently included in the XOVR ETF portfolio?
What is the main purpose of the XOVR ETF according to ERShares?
