Key facts
- Two new ETFs, Nasdaq-100 Ex-Elon Enterprises ETF and S&P 500 Ex-Elon Enterprises ETF, have been registered.
- These ETFs are designed to exclude companies founded, controlled, or led by Elon Musk.
- Tesla and SpaceX are explicitly named as excluded companies.
- The funds aim to provide capital appreciation through exposure to large-cap U.S. equity securities.
- The actively managed funds will keep at least 80% of assets in their respective index exposures.
Subversive ETFs, an investment firm, has filed paperwork with the Securities and Exchange Commission to launch two new exchange-traded funds that will intentionally exclude companies associated with Elon Musk. The proposed funds, the Nasdaq-100 Ex-Elon Enterprises ETF (QQNE) and the S&P 500 Ex-Elon Enterprises ETF (SPNE), aim to provide investors with an option to avoid exposure to Musk's ventures. Currently, Tesla and SpaceX are the primary companies targeted for exclusion. The actively managed ETFs plan to maintain significant exposure to their respective index constituents while reallocating the weight of excluded companies. This initiative caters to investors who may wish to divest from Musk's political stances or business expectations, particularly as his companies are often included in major market benchmarks.