#USA #New York #Private Equity #SpaceX #ERShares ETF

ERShares Crossover ETF Makes Waves with SpaceX

EntrepreneurShares (ERShares), known for its innovative and disruptive investment strategies, has recently made a significant advancement in the world of finance. The firm announced that its ERShares Crossover ETF (ticker: XOVR) has acquired SpaceX as its top holding. This landmark move is particularly noteworthy as it introduces private equity access to retail investors through an exchange-traded fund (ETF), a common type of mutual fund that is traded on stock exchanges.

A New Era for ETFs

Historically, private equity was an asset class predominantly available to institutional and accredited investors, largely because of constraints such as illiquidity and significant entry barriers. However, the introduction of the XOVR ETF, which relaunched on NASDAQ on August 29, 2024, is set to change that paradigm.

This ETF differentiates itself by combining both public and private equity into one liquid fund. With future assets under management (AUM) capped at $500 million, the XOVR creates a pathway for democratized investment opportunities—offering daily liquidity, diversification, and straightforward access for both retail and institutional investors alike.

Speaking Out on the Acquisition

Dr. Joel Shulman, Founder and Chief Investment Officer of ERShares, expressed his enthusiasm regarding the SpaceX acquisition, stating, "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."

With roughly 85% of its assets allocated to the Entrepreneur 30 Total Return Index (ER30TR) and a maximum of 15% to private equities such as SpaceX, the XOVR ETF aims to deliver a balanced portfolio designed for capitalizing on entrepreneurial growth.

Proven Performance and Historical Context

The proprietary ER30TR Index, created in 2005, has consistently outperformed several major indices with a total return of an impressive 2036% as of December 1, 2024. For context, during the same period:

- S&P 500 provided a 640% return
- Dow 30 yielded 599%
- Russell 1000 Growth returned 938%

While past performance does not guarantee future results, ERShares has established a two-decade track record of identifying outstanding growth opportunities.

Key Features of the XOVR ETF

XOVR's notable features include:

• - Unmatched Access: Exposure to both public and private equities within a single ETF.
• - Daily Liquidity: Regular trading on major U.S. brokerages for increased flexibility.
• - Transparency: Valued at net asset value (NAV) for straightforward pricing.
• - Ease of Entry: No minimum investment required, making it accessible to all investors.

Eva Ados, Chief Operating Officer and Chief Investment Strategist at ERShares, stated, "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."

Investment Philosophy and Future Outlook

The ERShares' investment philosophy is anchored in their proprietary Entrepreneur Factor® (EF) model, which evaluates 18 attributes of entrepreneurial leadership such as innovation and profitability. This robust framework has been crucial in identifying early-stage investment opportunities like Nvidia, Amazon, and Tesla.

Now, with the inclusion of private equities, the XOVR ETF empowers retail investors to engage with wealth creation during the early and dynamic stages of a company's lifecycle. Dr. Shulman emphasized this sentiment, stating, "By investing in entrepreneurial companies, we're investing in the future of the global economy. With XOVR, we're focused on the next wave of 'Magnificent 7' companies poised to disrupt industries and drive growth. Previously, institutional and high-net-worth investors held a distinct advantage over retail investors; however, this dynamic is changing as all investors seek to grow their wealth."

In essence, the ground-breaking XOVR ETF not only encapsulates ERShares' innovative approach to investment but also signifies a profound step forward in making private equity accessible to a broader range of investors. For more insights, visit entrepreneurshares.com.