New ETFs Targeting Companies Associated with Elon Musk

As SpaceX gears up for its initial public offering, various narratives have emerged about early investors and employees hoping to cash in on their connections to Elon Musk. Interestingly, Musk’s influence extends beyond just rocket launches and electric cars; it also touches on the cryptocurrency world.

A founder of an exchange-traded fund (ETF) called Subversive Capital has created two new funds that aim to take advantage of some negative public sentiment surrounding Musk. These ETFs operate similarly to mutual funds but trade like individual stocks and are legally registered under Tidal Trust I, associated with Subversive Markets Lab LLC.

For average investors, avoiding investments in the wealthiest individuals can be quite a task. Most tend to invest in mutual funds that track large indexes, such as the S&P 500 or Nasdaq 100. Recently, SpaceX was added to the Nasdaq 100 index, placing it within numerous funds that monitor these benchmarks. Meanwhile, Tesla has been a favorite for many mutual funds, particularly those focusing on large-cap and growth stocks.

Two newly registered ETFs—the Nasdaq 100 Formerly Elon Enterprises ETF and the S&P 500 Formerly Elon Enterprises ETF—are specifically designed to exclude Musk’s companies, including Tesla and Space Exploration Technologies Corporation. Other ventures associated with Musk, like Neuralink and The Boring Company, are not publicly traded, so they don’t fall under this fund.

The aim of these funds is to enhance capital growth through exposure to large-cap U.S. equities while deliberately excluding any companies linked to Musk. Filed documents with the U.S. Securities and Exchange Commission outline these intentions clearly.

While these funds are legitimate options for trading, they’ve received a fair share of criticism. In the past, Subversive’s ETF offerings have promised to give everyday people the opportunity to “invest like an oligarchy.” One of these funds focuses on stocks typically held by Democratic Congress members and their spouses, while another represents those favored by Republican members.

At this point, it’s uncertain whether investors will be drawn to these newly introduced Elon-free ETFs, with tickers QQNE and SPNE, or if they will outperform funds that involve Musk’s companies. Nevertheless, they represent an increasing interest in finding ways to sidestep investments associated with his brand, which may even evoke a reaction from Musk himself, especially given his well-known disdain for traders who shorted Tesla.