Prefer to steer clear of Elon Musk? Discover these two new ETFs that leave him out.
As SpaceX prepares for its IPO, numerous narratives have emerged concerning early supporters and employees poised to gain financially from their association with Elon Musk.
However, due to Musk’s involvement with DOGE, his remarks on social media, and a controversial gesture during Donald Trump’s inauguration, some individuals recognized a financial opportunity in distancing from him.
A fund management firm aptly named Subversive Capital has devised a method to capitalize on this negative sentiment by launching two new exchange-traded funds (ETFs) aimed at avoiding Musk’s influence.
These ETFs, akin to mutual funds but traded like stocks, are officially registered under Tidal Trust I and branded by Subversive Markets Lab LLC. The initial filing was brought to light by an industry publication.
For the average investor, steering clear of the world’s wealthiest individual can be challenging, particularly when they invest in mutual funds tied to major indices like the S&P 500 and Nasdaq 100. Recently, SpaceX was incorporated into the Nasdaq 100 and is also part of financial indices like FTSE Russell and MSCI. Additionally, Tesla has been a long-standing favorite among mutual funds, especially those focusing on large-cap and growth stocks.
The newly introduced ETFs, titled Nasdaq-100 Ex-Elon Enterprises ETF and S&P 500 Ex-Elon Enterprises ETF, aim to exclude these influential companies. According to the prospectus, the excluded entities include Tesla and Space Exploration Technologies Corp. Other of Musk’s ventures, such as Neuralink and The Boring Company, are not publicly traded.
There is potential for these Ex-Elon funds to also overlook other companies that become closely linked to Musk in the future. The objective of the Ex-Elon funds is to achieve capital growth through a diversified range of large-cap U.S. stocks while deliberately excluding shares from companies associated with Musk in any major capacity, as outlined in their filing with the U.S. Securities and Exchange Commission.
Despite their legitimacy, there is an element of humor in these funds. Previously, Subversive garnered attention for other ETFs that allow everyday investors to “invest like the elite.” One fund mirrors stocks known to be held by Democratic lawmakers and their families, while another reflects the investments of Republican counterparts.
It remains to be seen whether investors will gravitate towards these Ex-Elon ETFs, identified by the tickers QQNE and SPNE, or if they will outperform funds that include companies linked to Musk. However, they signify a rising interest in alternatives to Musk’s enterprises, possibly even serving to irritate him, given his well-known disdain for traders who have shorted Tesla stocks.
