Groundbreaking, First and Only ETF, Revolutionizes Private Equity Access for Retail Investors
NEW YORK, Dec. 12, 2024 — EntrepreneurShares (ERShares), a trailblazer in entrepreneurial and disruptive investment strategies, has made history with the acquisition of an additional $10M investment in SpaceX. This purchase follows last week’s inaugural investment, bringing the total investment to over $20m (including the recent 37% appreciation). SpaceX now represents the top holding in its ERShares Crossover ETF (Nasdaq: XOVR) with a 12.3% overall weight. XOVR is 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.
XOVR democratizes private equity by combining daily liquidity, diversification, and ease of access for both retail and institutional investors. Importantly, it also provides daily pricing at Net Asset Value, distinguishing XOVR from some closed-end funds, that hold the same SpaceX investment yet trade at levels more than 10x the Net Asset Value.
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 an additional purchase of SpaceX making it, by far, the largest weight (12.3%) in XOVR. This investment follows our purchase last week, that increased 37% in less than 10 days. Private equity has historically been an exclusive domain, limited by illiquidity, lock-ups, price premiums, and significant barriers to entry. XOVR breaks these barriers, offering unprecedented access to a previously untouchable asset class without any premium to net asset value.”
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. Notably, the strategy of the ER30TR was originally based on a VC model applied to publicly traded securities. The inclusion of private equity now extends the existing investment thesis.
Demonstrated Performance
The proprietary ER30TR Index, founded in 2005, has consistently outperformed major indices with a total return of 2023% (as of 12/11/2024), compared to:
- S&P 500: 640%
- Dow 30: 589%
- Russell 1000 Growth: 965%
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 and value. Some closed-end funds trade at levels that are 10x NAV, making it appreciably more challenging for long-term profit potential.
- 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 like SpaceX to address a critical unmet need. The inclusion of privates like SpaceX further enhances its appeal, providing retail investors with 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.
SOURCE ERShares
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