If You Invested in ERShares Private-Public Crossover ETF (XOVR)

EntrepreneurShares Series Trust ERShares Private-Public Crossover ETF (XOVR) is an exchange-traded fund that combines exposure to public equities with selective exposure to private equity within a single, liquid vehicle. Issued by ERShares and trading under the ticker XOVR, the fund is described in multiple ERShares announcements as the first ETF to integrate private equity into its portfolio and to provide investors exposure at the IPO stage.

The ETF is built around ERShares' proprietary Entrepreneur 30 Total Return Index (ER30TR), also referred to as the Entrepreneur 30 Total Return Index. According to ERShares, XOVR allocates over 85% of its holdings to this index, which focuses on entrepreneurial U.S. large-cap companies identified using ERShares' proprietary venture capital and Entrepreneur Factor models. The remaining portion of the portfolio is allocated to private equity investments, including exposure to companies such as SpaceX and Klarna through structured vehicles and privately offered securities.

ERShares states that XOVR is designed to bridge the gap between private and public markets by giving investors access to companies during the private-to-public transition, a stage that has historically been reserved for venture capital, insiders, and institutional investors. The fund's approach is described as an effort to democratize access to private equity by offering exposure to pre-IPO and private companies within the regulatory and liquidity framework of an ETF, with daily net asset value (NAV) pricing.

Investment approach and structure

According to ERShares communications, XOVR's structure combines:

• Core exposure to the ER30TR Index, which holds entrepreneurial U.S. large-cap companies and is based on ERShares' proprietary venture capital model applied to publicly traded securities.
• A measured allocation (described as up to 15% in some ERShares materials) to private equity holdings, including positions in companies such as SpaceX and exposure to Klarna through special purpose vehicles and privately offered securities.

ERShares describes its methodology as relying on research-backed principles and an Entrepreneur Factor model developed over many years of academic and market research. These frameworks are used to identify high-growth entrepreneurial companies and to evaluate private equity opportunities that align with the ETF's crossover mandate.

Private-public crossover focus

ERShares characterizes XOVR as a private-public crossover ETF, with a mandate to participate in growth across both private and public company life cycles. The fund's communications highlight several themes:

• Providing exposure at or around the IPO stage through private equity positions that may precede public listings.
• Using a venture-capital-style lens to select entrepreneurial public companies through the ER30TR Index.
• Maintaining daily liquidity and NAV-based pricing while including a limited allocation to private equity holdings.

ERShares emphasizes that private equity exposure within XOVR is subject to risks such as illiquidity, valuation uncertainty, and speculative characteristics. The fund's disclosures note that exposure to private companies is limited to a portion of fund assets and that holdings, exposures, and allocations may change without notice.

Examples of holdings and exposure

ERShares news releases provide examples of companies held or referenced within XOVR's strategy. These examples are presented for illustrative purposes and are not described as recommendations. They include:

• SpaceX, identified as a top and, at times, largest holding in the ETF, with ERShares announcing significant allocations to the company as part of XOVR's private equity exposure.
• Klarna, where exposure is achieved through privately offered securities issued by an investment vehicle that invests in special purpose vehicles (SPVs), used to illustrate access to companies approaching IPO.
• Public companies such as NVIDIA Corp, Meta Platforms Inc, Oracle Corp, Arista Networks Inc, Netflix Inc, Palantir Technologies Inc, Ubiquiti Inc, AppLovin Corp, and Reddit Inc, listed in an ERShares communication as top holdings of the ETF at a particular point in time.

ERShares notes that such holdings are subject to change and that references to specific companies do not constitute buy or sell recommendations.

Valuation and risk considerations

ERShares states that valuing private equity within an ETF requires a structured, multi-factor framework. For XOVR, the firm describes a pricing approach that adjusts valuations based on factors such as tender offers, IPOs, ERShares' private transactions at new price levels, and significant market movements with volume and activity. ERShares indicates that its team monitors private holdings using diverse data sources with the goal of ensuring that the ETF's NAV reflects market dynamics while adhering to industry valuation standards.

The fund's disclosures highlight a range of risks, including but not limited to private equity investment risk, illiquidity risk, valuation risk, exit strategy risk, market risk, concentration risk, and risks associated with exchange-traded funds and common stocks. ERShares repeatedly notes that investing involves risk, including the possible loss of principal, and that past performance is not indicative of future results.

Role within the ERShares platform

ERShares describes itself as focused on global investment strategies driven by entrepreneurship and innovation, using proprietary models such as the Entrepreneur Factor and the Entrepreneur 30 Total Return Index. Within this context, XOVR is presented as an ETF that extends ERShares' entrepreneurial investing philosophy into the private equity realm, allowing public market investors to access venture-capital-style opportunities through a crossover structure that spans both private and public markets.

According to ERShares, XOVR is positioned as a vehicle for investors who seek exposure to entrepreneurial growth companies and to the private-to-public transition stage, within the framework of an exchange-traded fund that offers daily liquidity and NAV-based pricing.