Latest news with #XOVR
CNBC
16 hours ago
- Business
- CNBC
New ETF gives investors opportunity to act like private equity giant as shift away from public stocks picks up
The S&P 500 is less than 3% from an all-time high. Six of its 11 sectors are within 5% of an all-time high. But even as the U.S. stock market index proves its resilience during a volatile stretch for investors, more money from within portfolios is expected to shift in to privately traded companies. Jan Van Eck, CEO of ETF and mutual fund manager VanEck, says the trend of companies staying private for longer rather than seeking an initial public offering is here to stay and it offers new opportunities. High-profile examples include Elon Musk's SpaceX, Sam Altman's OpenAI and fintech Stripe. According to Van Eck, allocations to private assets will jump from a current average portfolio holding level of approximately 2% to 10% in the years ahead. Some ETFs have begun to invest small portions of their assets in privately held company shares, including SpaceX, such as the ERShares Private-Public Crossover ETF (XOVR). VanEck has launched an ETF tackling the private opportunity in a different way: taking big positions in the publicly traded shares of the investment giants, including private equity firms and other alternative asset managers, that own many private companies. The VanEck Alternative Asset Manager ETF (GPZ), which launched this month, has a portfolio holdings list that includes Brookfield, Blackstone, KKR, Brookfield Asset Management and Apollo, which combined make up almost 50% of the fund. TPG, Ares and Carlyle are also big positions, in the 5% range each. The new ETF extends an existing focus on private markets for VanEck. For over a decade, it has offered investors access to private credit, through the VanEck BDC Income ETF (BIZD), which invests in the business development companies that lend to small- and mid-sized private companies. That ETF has a high level of exposure to Ares, Blue Owl, Blackstone, Main Street and Golub Capital, which make up about half of the fund. It pays a hefty dividend of 11%. "You have to believe this is a secular trend and growth will be higher than that for normal money managers, including ETF and mutual fund managers," said Van Eck. He cautions, however, there is more volatility in these funds compared to the public equity market overall. "You have to size it appropriately," he added.
Yahoo
06-06-2025
- Business
- Yahoo
XOVR ETF Adds Anduril, Joining SpaceX to Offer Pre-IPO Access
The first ETF that gives retail investors some exposure to private companies NEW YORK, June 06, 2025 (GLOBE NEWSWIRE) -- ERShares, the first Crossover ETF that offers retail investors access to Private companies, with SpaceX as its top weight, is ushering in the next generation of investing with a new private equity position in Anduril Industries. Through the XOVR ETF, which primarily invests (85% +) in the US Entrepreneurial Large Cap ER30TR Index, ERShares continues ...its pursuit to provide retail investors access to private equity—which we believe offers exposure to high-growth, entrepreneurial companies typically reserved for institutions and high net worth investors, and does so at the same pricing available to those accredited investors. XOVR complies with SEC guidelines by keeping private equity exposure under 15%, with over 85% of the portfolio tracking the Entrepreneur 30 Total Return Index (ER30TR)—built on ERShares' proprietary Entrepreneur model, applied to public markets for more than two decades. Given its weighting, the ER30TR Index drives the majority of XOVR's return, while the private holdings offer potential upside and added diversification. Private equity investments can experience significant price swings—both upward and downward—over extended periods, even if valuations are not marked frequently. Additionally, private equities are inherently less liquid and less transparent than their public counterparts, resulting in higher risk profiles despite comparable market capitalizations. As with all investments, public equities can be volatile, though they have historically offered meaningful return potential over time. Private companies may magnify both opportunity and risk, which is why ERShares encourages investors to consult with a qualified financial advisor before making any investment decisions. To help manage risk, ERShares applies structured parameters around the size and scope of its private holdings. The due diligence process for these positions mirrors the same rigorous methodology used in constructing the ER30TR Index—adapted for private markets. Relaunched on August 29, 2024, XOVR became the first ETF to blend public equities with private equity holdings – potentially delivering diversified, liquid access to both high-growth public companies and elite pre-IPO firms. This ETF Crossover structure helps bridge two previously disconnected markets in one transparent vehicle. On May 30, 2025, ERShares initiated a $3M (approx. 1%) investment in Anduril, marking XOVR's third private equity holding - after SpaceX ($33M, approx. 10%) and Klarna ($2M, less than 1%) - and establishing Anduril as its second-largest private position. The move reflects ERShares' conviction in companies that sit at the intersection of innovation, national importance, and scalable disruption. The position was selected after extensive internal research and due diligence, consistent with ERShares' proprietary Venture Capital-style framework for evaluating private and public companies. 'Our proprietary research model identifies category-defining companies before they go public,' said Dr. Joel Shulman, Founder and CIO of ERShares. 'Anduril embodies the deep tech leadership and mission-driven innovation we seek for XOVR.' ERShares also recently increased its SpaceX position at $185 per share - matching its previous entries - to reaffirm confidence in the company's valuation amid market speculation. Bridging Public and Private Markets 'We're not just following innovation - we're positioning investors at its source,' said Eva Ados, Chief Investment Strategist at ERShares. 'Whether private or public, our focus is on trying to identify the next Magnificent Seven (The "Magnificent 7" currently refers to a group of seven large-cap, high-growth U.S. technology companies: Apple Inc. (AAPL), Microsoft Corporation (MSFT), Alphabet Inc. (GOOGL), Inc. (AMZN), NVIDIA Corporation (NVDA), Meta Platforms, Inc. (META), and Tesla, Inc. (TSLA))—those rare, transformational companies that have the potential to shape entire decades of innovation and growth.' Anduril Industries: The Next Generation of Defense Technology Founded by Palmer Luckey - creator of Oculus and a key early collaborator with Palantir - Anduril Industries represents the next generation of defense technology. Anduril is rapidly becoming foundational to U.S. military modernization initiatives. Transparent Valuation Backed by Research ERShares uses a structured valuation methodology to price private equity holdings - drawing from tender offers, internal transactions, IPO indicators, and comparables – to help ensure pricing is fair, consistent, and market-aware. This framework helps protect investors while maintaining daily liquidity and regulatory compliance. Investing in the Future - Before the IPO With positions in SpaceX, Klarna, and now Anduril, XOVR remains the only ETF offering diversified access to potentially high growth private companies alongside expanding public innovators. The fund allows investors to participate in the potential next wave of value creation - before it goes public. 'We built XOVR to give retail investors access to leading private companies at the critical pre-IPO stage,' added Dr. Shulman. 'It is time they participate in the value creation that was once reserved only for institutions and accredited investors.' Past performance is no guarantee of future results, please refer to the disclosures below for important risk information: All investing involves risk, including potential loss of principal. Distributed by Vigilant Distributors LLC. Media Contact: info@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-02-2025
- Business
- Yahoo
ERShares XOVR ETF Expands Access to High-Growth Private Companies and Sets a New Standard for Private Equity Valuation in ETFs
NEW YORK, Feb. 27, 2025 /PRNewswire/ -- ERShares, the issuer of the XOVR ETF, the first exchange-traded fund to integrate private equity into its portfolio, continues to lead the financial industry with an innovative investment strategy. With a diversified portfolio that includes SpaceX (currently 10% of total holdings) and exposure to Klarna, a leading fintech company preparing for its IPO, ERShares is setting a new standard for investor access to high-growth private companies. XOVR ETF: Bridging the Gap Between Private and Public Markets In a recent interview on Fox Business, Eva Ados, Chief Investment Strategist at ERShares, discussed the growing issue of private companies remaining private longer and limiting access for retail investors. "As the IPO landscape evolves, many high-profile companies, including SpaceX, are delaying their public offerings. This limits access to only accredited and institutional investors, leaving retail investors out of some of the most significant wealth-creation events," said Ados. "Some industry players prefer to keep private equity out of reach for retail investors, reinforcing a system where only institutional and accredited investors can benefit. At ERShares, we believe in democratizing access to these opportunities, ensuring that everyday investors can participate in the growth of tomorrow's industry leaders before they go public." A New Era of Private-Public Investing with XOVR Opportunities for investors to access high-potential ventures at IPO valuations of around $560 million—similar to Amazon in 1997 or Nvidia in 1999—have become increasingly rare or even nonexistent in today's markets. "With private companies delaying IPOs, retail investors face increasing barriers to these high-growth opportunities. Our XOVR ETF is designed to bridge this gap, providing investors access to promising companies like SpaceX, along with exposure to companies such as Klarna, before they reach public markets," said Dr. Joel Shulman, Founder and CIO of ERShares. Enhancing Private Equity Valuation Standards in ETFs ERShares remains committed to adhering to industry best practices in valuation methodologies for private equity investments held within ETFs. XOVR's pricing framework follows structured, research-backed principles to ensure consistency and transparency in valuation practices. "Valuing private equity within an ETF requires a rigorous, multi-factor approach that accounts for market-driven price discovery mechanisms," Dr. Shulman explained. "We adjust valuations based on tender offers, IPOs, ERShares' private transactions at new price levels, and significant market movements with volume and activity. Our team continuously monitors these holdings using diverse, verified data sources to ensure our net asset value (NAV) accurately reflects real market dynamics while maintaining compliance with industry valuation standards." ERShares continues to lead in private market investing and ETF management, providing investors with access to high-growth companies before they go public. Acknowledging the evolving landscape of private market data, the firm remains open to refining its valuation methodologies as more reliable real-time pricing emerges. The Future of Investing: Expanding Access to Private and Public Markets As ERShares continues to expand access to pre-IPO investments, with the XOVR ETF, it remains committed to providing investors with exposure to high-growth companies through a disciplined and research-driven investment approach. "We continue to provide evidence of how this private-public model works," added Dr. Shulman. "Our approach will soon become clear as upcoming IPOs unfold, reinforcing the value of integrating high-growth private firms into a diversified portfolio. The future of investing is no longer just public or private—it is both." Past performance is no guarantee of future results, please refer to the disclosures below: View original content to download multimedia: SOURCE ERShares Sign in to access your portfolio
