Two proposed exchange-traded funds (ETFs) aim to give investors exposure to the Nasdaq-100 and S&P 500 while excluding companies founded, controlled or led by Elon Musk.
‘Ex-Elon’ ETFs Target Tesla, SpaceX
Subversive Markets Lab LLC filed with the SEC to launch the Subversive Nasdaq-100 Ex-Elon Enterprises ETF (QQNE) and the Subversive S&P 500 Ex-Elon Enterprises ETF (SPNE), which would track their respective benchmarks while excluding companies involving Musk.
The initial exclusion list includes Tesla Inc (NASDAQ:TSLA) and Space Exploration Technologies Corp. (NASDAQ:SPCX), with the funds redistributing their index weight across the remaining constituents.
According to the filing, the ETFs are intended for investors seeking broad U.S. equity exposure without companies associated with Musk, which it said may carry ‘corporate governance concerns, political risks, and heightened share-price volatility.’
The ETFs may gain exposure through direct stock holdings, other ETFs, or derivatives.
Follows SpaceX’s Nasdaq-100 Entry
The filing comes after SpaceX joined the Nasdaq 100 on Tuesday following its historic June IPO, increasing passive investors’ exposure to Musk-controlled companies.
Millions of investors who have never purchased a single share of SpaceX are now indirectly exposed to the aerospace company through index funds and ETFs that track the Nasdaq-100.
Other Musk-controlled companies, including Neuralink and The Boring Company, are privately held and are not included in the proposed funds.
How the Funds Will Maintain Their Holdings
According to the filing, QQNE will sell any holding once it is removed from the Nasdaq 100 and will not own any index constituent that meets its “excluded enterprises” criteria. SPNE will follow the same approach for companies in the S&P 500.
Both funds will periodically review their holdings to ensure companies that later become controlled or led by Musk are excluded, while newly eligible index constituents can be added.
Price Action: SpaceX closed 2.60% higher on Thursday at $152.16 and rose 0.06% in after-hours trading.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium, and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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