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This is a hybrid ETF that combines a rules-based portfolio of public stocks with a limited allocation to private companies. The fund looks very different today than when it originally launched in November 2017. Its current structure dates back to Aug. 29, 2024, when the ETF adopted its dual public-private approach.
The bulk of XOVR tracks the proprietary ER30 Total Return Index (ER30TR), a rules-based benchmark consisting of approximately 30 entrepreneurial companies. While many holdings fall into the large-cap growth category, the index is not a traditional large-cap growth benchmark and can include companies across multiple sectors.
The most eye-catching aspect of XOVR is its private-company allocation. The ETF currently invests in privately held firms, including SpaceX and Anduril. Previously, the fund also held Klarna shares prior to its 2025 IPO. This private-market exposure is what differentiates XOVR from most traditional ETFs and has helped attract investor interest.
As of June 3, 2026, XOVR had grown to approximately $459.70 million in assets under management and charges a 0.75% expense ratio.
No, XOVR does not currently offer a dividend. Many of the companies held within the portfolio prioritize reinvesting cash into growth initiatives. While some holdings may distribute dividends, any income generated is minimal and is largely offset by the ETF's operating expenses. Investors typically buy XOVR for growth potential and private-market exposure rather than income.
An expense ratio represents the annual fee charged by an ETF to cover management and operating costs. The fee is deducted internally from fund assets, meaning investors never receive a separate bill, but it still reduces overall returns. XOVR charges a 0.75% expense ratio. On a $10,000 investment, that equates to approximately $75 per year in fee drag.
1 Year | 3 Years | 5 Years | ETF Inception | |
|---|---|---|---|---|
XOVR Market Price | 5.90% | 15.29% | 2.02% | 8.35% |
XOVR Net Asset Value | 5.89% | 15.37% | 1.98% | 8.36% |
The timing of XOVR's strategy is worth considering. With the SpaceX IPO scheduled for mid-June, the ETF's unique selling proposition is arguably less compelling than it was when SpaceX was only available through private markets.
Some investors may reasonably ask whether it makes sense to pay a 0.75% expense ratio for a portfolio largely consisting of publicly traded large-cap growth stocks that can be purchased individually, especially now that SpaceX itself is becoming publicly accessible.
It's also important to remember that XOVR does not directly own most of its SpaceX position. Instead, the exposure is achieved through an SPV, which introduces additional complexity, valuation uncertainty, and liquidity considerations compared to holding publicly traded shares outright.
In the past, strong investor inflows and outflows have at times caused the SpaceX allocation to move materially above its intended weight, raising questions about compliance with regulatory limits governing illiquid holdings.
Historical performance also deserves scrutiny. While the ETF's current strategy dates back only to Aug. 29, 2024, and longer-term results are not directly comparable, the fund has yet to establish a profitable history under its revised structure. Investors are therefore being asked to pay relatively high fees for a strategy that remains largely unproven.
For investors seeking SpaceX exposure specifically, the IPO may reduce the need for an intermediary vehicle like XOVR. While the fund offers a unique blend of public and private investments, it is one of those rare cases in the ETF industry where investors should carefully consider whether they are paying more and potentially getting less.
While SpaceX receives most of the attention, investors should remember that the majority of XOVR's assets remain invested in its public equity portfolio.
The ER30TR Index currently consists of 33 companies. Industrials account for approximately 48.4% of assets, followed by technology at 20.7%, healthcare at 9.8%, communication services at 8.9%, financials at 7.7%, and consumer discretionary at roughly 3.7%.
The ETF's largest holding as of June 3, 2026, is its 13.24% allocation to SpaceX through an SPV. While SPVs provide access to companies that would otherwise be unavailable, they also introduce additional risks. These include valuation uncertainty, limited liquidity, additional structural complexity, and the possibility that the underlying shares cannot be readily sold during periods of market stress.
Outside of SpaceX, the portfolio contains several familiar public companies. The largest publicly traded holding is Nvidia (NVDA -0.75%) at approximately 11% of assets, followed by Alphabet (GOOGL +1.40%) at roughly 7%.
The ERShares Private-Public Crossover ETF (XOVR +1.50%) has attracted significant attention ahead of the highly anticipated SpaceX initial public offering (IPO).
Unlike most ETFs, XOVR takes advantage of SEC Rule 22e-4, which permits registered funds to allocate up to 15% of assets to illiquid investments. For example, that flexibility has allowed the ETF to build a sizable position in SpaceX through a special-purpose vehicle (SPV), a feature that has been heavily promoted in company press releases and marketing materials.
However, investors should understand that while the SpaceX exposure is undoubtedly unique, it also introduces complexities that don't exist in most broad-market funds.
In addition to charging higher fees than a typical index ETF, industry commentators from Morningstar have raised concerns about issues including liquidity, valuation methodology, and the SpaceX allocation relative to the ETF's overall assets.
Here's what you need to know about how XOVR works, what it owns, and whether it may fit your investment objectives.
