Author: David

By Eva Ados

XOVR’s Shareholder Protection Plan was designed around a simple principle: long-term shareholders should come first, including the retail investors XOVR was built to serve.

In my June 12, 2026 FOX interview, I discussed how the Plan was created around the SpaceX IPO event to help protect existing shareholders and reinforce XOVR’s broader private-public crossover ETF framework.

XOVR was built to broaden access to investment opportunities and structures that have historically been more accessible to institutions, insiders, and the wealthiest investors. The Fund reflects a long-term belief that retail investors deserve access, alignment, and protection in a disciplined ETF framework.

XOVR’s SpaceX Exposure During the SpaceX IPO Period

During the SpaceX IPO period, XOVR’s SpaceX exposure reflected more than $183 million of unrealized appreciation from March 30 through June 15, 2026. Over the same period, XOVR appreciated 30.71%***, with SpaceX exposure contributing significantly to ETF performance.

These figures reflect an important moment for the Fund, but they are not the full story. The larger story is the framework behind XOVR and the long-term shareholders who believed in that framework before the broader market was paying attention.

What Was the XOVR Shareholder Protection Plan?

The XOVR Shareholder Protection Plan was designed around the SpaceX IPO event and focused on helping protect existing long-term shareholders.

The three-step Plan was designed to help protect existing shareholders by:

• Updating the valuation of XOVR’s SpaceX exposure under the Fund’s Board-reviewed valuation framework
• Limiting certain large, short-term event-driven creations ahead of the IPO
• Applying exit economics intended to help protect existing shareholders

The Plan was not created for short-term attention. It was created because shareholder alignment matters to us.

“XOVR was not built for short-term traders chasing a headline. It was built for shareholders who believe retail investors deserve a stronger seat at the table.”

A Private-Public Crossover ETF Framework Built for Long-Term Shareholders

XOVR was the first* to create the private-public crossover ETF structure, even when many in the industry questioned whether the model could succeed.

That matters because innovation in ETF structure is not just about creating something new. It is about creating something useful, disciplined, and aligned with shareholder expectations.

The private-public crossover ETF structure, the 0/0 SPV structure**, the liquidity arrangement, and the Shareholder Protection Plan all reflect the same long-term philosophy: XOVR is designed to broaden access while keeping long-term shareholder alignment at the center of the Fund.

Why Retail Investors Matter to XOVR

Retail investors are not simply participants in the market. They are often the shareholders with the strongest conviction, the longest time horizon, and the deepest belief in the future of innovation.

That is why XOVR was built with retail shareholders in mind.

Retail investors should not be last in line when new investment frameworks are created. They should not be left behind while institutions and insiders receive early access to the most compelling opportunities. They deserve thoughtful structures, disciplined access, and long-term alignment.

“Every major step we have taken has been guided by the same commitment: long-term shareholders come first, including the retail investors XOVR was built to serve.”

XOVR’s Long-Term Mission

The SpaceX IPO event was an important moment, but XOVR’s mission is bigger than any single event.

XOVR is designed to be a private-public crossover ETF framework for long-term shareholders who want access to innovation, disciplined exposure, and a structure built around alignment.

We believe many shareholders view XOVR as more than a trade. They view it as participation in the development of a new ETF category and a long-term effort to expand access to innovation.

That is the kind of shareholder base we want to build.

A shareholder base grounded in conviction.

A shareholder base that understands the long-term purpose of the Fund.

A shareholder base that believes retail investors deserve a stronger seat at the table.

XOVR was built around that belief. And as the market evolves, we will continue to innovate around that same principle.

For more information, please visit:

entrepreneurshares.com/updates/

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Disclosures:

Information as of June 15, 2026. For informational purposes only. Holdings and exposures are subject to change. Past performance does not guarantee future results. Please review the Fund’s prospectus and website disclosures before investing.

* Basis of “first” claim: ERShares review of U.S.-listed open-end 1940 Act ETFs and public filings as of Aug 29, 2024; requires daily creations/redemptions and a single ETF portfolio with private-company exposure reflected in daily NAV alongside public equities. Excludes interval funds, closed-end funds, BDC/PE-manager ETFs, SPACs, and products without private-company exposure in NAV.

** A 0/0 SPV (Special Purpose Vehicle) is an investment structure that charges 0% management fees and 0% performance (carry) fees, allowing investors to participate without the typical fund fee structure.

*** Please refer to the following page for standardized performance information and holdings: https://entrepreneurshares.com/xovr-etf/

Eva Ados is Chief Investment Strategist and Chief Operating Officer at ERShares, where she helps shape the firm’s macro views, thematic research priorities, and operations.

By Eva Ados

Retail investors should not be last in line.

That belief is personal to me. It is also one of the reasons XOVR was built.

For too long, some of the most important investment opportunities and market frameworks have reached retail investors only after institutions, insiders, and the wealthiest investors had already been given the first seat at the table. We believe that needs to change.

XOVR was built for long-term shareholders who believe retail investors deserve more: more access, more alignment, more protection, and more respect.

XOVR’s SpaceX Exposure During the SpaceX IPO Period

During the SpaceX IPO period, XOVR’s SpaceX exposure reflected more than $183 million of unrealized appreciation¹ from March 30 through June 15, 2026. Over the same period, XOVR appreciated 30.71%***, with SpaceX exposure contributing significantly to ETF performance.

But XOVR was never built to be only about one company, one IPO, or one market event.

XOVR was built around a bigger idea: that retail investors should be able to participate in innovative investment frameworks that have historically been reserved for institutions and insiders.

“XOVR was built for a simple reason: to help retail shareholders access opportunities and frameworks that have historically been reserved for institutions, insiders, and the wealthiest investors.”

Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, current holdings and other important information please call +1 (617) 279 0045 or visit our website www.ershares.com.

¹Between March 30, 2026 and June 15, 2026, XOVR’s SpaceX position generated approximately $183.8 million in unrealized gains. This number comes directly from the fund’s internal daily performance records, which track the fund’s total value and profit/loss each day, alongside the portion of that gain specifically tied to the SpaceX position. Until June 12, 2026, SpaceX was a private company, so unlike a publicly traded stock, its value was not updated every day based on a stock market price. Instead, its value was updated periodically, only when new, credible information became available about what the company was worth (for example, based on secondary market transactions). When that happened, the fund updated its valuation of the SpaceX position to reflect the new information. Post-IPO, the fund has valued the SpaceX position based on the movement of the underlying stock after accounting for a lack of marketability discount due to the lockup.

A Fund Built Around Long-Term Shareholders

The shareholders who matter most to us are not short-term traders chasing a headline. They are the shareholders who believe in the long-term vision. They are the shareholders who understand that building something new requires conviction, patience, and trust.

That is why XOVR’s Shareholder Protection Plan mattered.

In my FOX interview conducted on June 12, 2026, I discussed XOVR’s three-step Shareholder Protection Plan around the SpaceX IPO event. The Plan was designed to help protect existing long-term shareholders by:

• Updating the valuation of XOVR’s SpaceX exposure under the Fund’s Board-reviewed valuation framework
• Limiting certain large, short-term event-driven creations ahead of the IPO
• Applying exit economics intended to help protect existing shareholders

The purpose was clear: long-term shareholders should not be pushed aside during major market events. They should not be treated as an afterthought. They should not be last in line.

Innovation Is Not Easy — But It Is Necessary

XOVR reflects the work of an innovative team that has continued to push the ETF structure forward. We were the first* to create the private-public crossover ETF structure, even when many in the industry questioned whether the model could succeed.

We did not innovate for novelty. We innovated because we believed retail investors deserved a better framework.

The private-public crossover ETF structure, the 0/0 SPV structure**, the liquidity arrangement, and the Shareholder Protection Plan were not separate ideas. They were all built around the same principle: long-term shareholder alignment.

“Long-term shareholders come first, including the retail investors XOVR was built to serve.”

Being Part of Something Bigger

Many shareholders do not view XOVR as a short-term trade around one event. They view it as participation in the development of a new private-public crossover ETF framework.

That matters.

Because when shareholders feel aligned with a long-term mission, they are not just watching a ticker. They are part of a larger effort to expand access, challenge outdated assumptions, and build a structure designed for the next generation of investing.

This is what XOVR represents to us.

It represents access, innovation, and long-term alignment. Most importantly, it represents the belief that retail investors deserve to be treated with seriousness, respect, and commitment.

Markets will move. Headlines will change. Performance will vary over time. But the principle behind XOVR will remain the same.

Retail investors should not be last in line.

That is why XOVR was built. That is why we created the Shareholder Protection Plan. And that is the principle that will continue to guide us.

For more information, please visit:

entrepreneurshares.com/updates/

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Disclosures:

Information as of June 15, 2026. For informational purposes only. Holdings and exposures are subject to change. Past performance does not guarantee future results. Please review the Fund’s prospectus and website disclosures before investing.

* Basis of “first” claim: ERShares review of U.S.-listed open-end 1940 Act ETFs and public filings as of Aug 29, 2024; requires daily creations/redemptions and a single ETF portfolio with private-company exposure reflected in daily NAV alongside public equities. Excludes interval funds, closed-end funds, BDC/PE-manager ETFs, SPACs, and products without private-company exposure in NAV.

** A 0/0 SPV (Special Purpose Vehicle) is an investment structure that charges 0% management fees and 0% performance (carry) fees, allowing investors to participate without the typical fund fee structure.

*** Please refer to the following page for standardized performance information and holdings: https://entrepreneurshares.com/xovr-etf/

Eva Ados is Chief Investment Strategist and Chief Operating Officer at ERShares, where she helps shape the firm’s macro views, thematic research priorities, and operations.

By Joel Shulman

Innovation has become one of the most powerful drivers of investment returns over the past several decades. From cloud computing and e-commerce to artificial intelligence and biotechnology, investors seek to identify companies they believe may have strong growth potential.

What is innovation investing?

This trend has given rise to a popular investment approach known as innovation investing. At its core, innovation investing focuses on companies developing products, technologies, and business models capable of reshaping industries and creating new markets. Rather than emphasizing mature businesses with stable cash flows, innovation investors seek organizations positioned to benefit from major technological and economic shifts, even if there is no guarantee these companies will succeed.

What is an active growth fund?

Innovation investing often overlaps with another popular strategy: active growth investing. An active growth fund is a professionally managed investment fund that seeks to identify companies expected to grow faster than the broader market. Unlike passive index funds, active growth managers conduct research, evaluate management teams, analyze competitive advantages, and make investment decisions based on their assessment of future growth potential.

Many active growth funds focus heavily on innovative industries such as artificial intelligence, software, robotics, healthcare technology, clean energy, and advanced manufacturing. The goal is not simply to own successful companies today but to identify potential market leaders years before they become widely recognized.

Why innovation increasingly happens in private markets

For investors interested in private markets, innovation investing increasingly extends beyond public equities. Many groundbreaking companies now remain private for much longer than they did in previous decades. As a result, investors frequently ask whether they can invest in startups before they go public.

While direct access remains limited, several investment vehicles have emerged to address this demand. Specialized funds, venture-oriented portfolios, and private market products allow investors to gain exposure to startups and late-stage private companies through diversified structures rather than individual investments.

Are there ETFs that invest in private technology companies?

Another common question is whether there are ETFs that invest in private technology companies. While most ETFs primarily hold publicly traded securities, a growing number have incorporated limited exposure to private firms. These funds may hold shares in late-stage technology companies alongside public holdings, offering investors indirect access to private innovation through a crossover ETF structure.

Investors also frequently ask which ETFs own private technology companies. The answer changes over time as fund managers adjust portfolios and private company valuations evolve. However, several innovation-focused and venture-oriented funds have included private technology holdings as part of broader strategies designed to capture long-term technological growth.

The appeal and the risks

The appeal is understandable. Some of today’s most sought-after companies in artificial intelligence, aerospace, fintech, and enterprise software have remained private for years while generating substantial business value. Investors naturally want exposure to these growth stories before they reach public markets.

That said, innovation investing is not without risks. Emerging technologies can be unpredictable, valuations may fluctuate significantly, and many promising businesses ultimately fail to achieve commercial success. Active growth funds can also experience periods of underperformance, particularly when investors favor more defensive sectors.

Why a long-term perspective matters

Nevertheless, innovation remains one of the defining economic forces of the modern era. For investors with a long-term perspective, combining active growth strategies with selective exposure to private and public innovators can provide access to some of the most significant wealth-creation opportunities in the global economy.

The takeaway

The key is maintaining a disciplined approach. Successful innovation investing is rarely about chasing headlines. Instead, it involves identifying durable trends, evaluating business quality, and allowing time for transformative ideas to mature into lasting enterprises.

FAQ

What is innovation investing?

Innovation investing focuses on companies developing products, technologies, and business models capable of reshaping industries and creating new markets. The approach favors organizations positioned to benefit from major technological and economic shifts.

What is an active growth fund?

An active growth fund is a professionally managed investment fund that seeks to identify companies expected to grow faster than the broader market. Unlike passive index funds, active growth managers conduct research, evaluate management, and make investment decisions based on their assessment of future growth potential.

Are there ETFs that invest in private technology companies?

A growing number of ETFs incorporate limited exposure to private firms. These funds may hold late-stage private technology companies alongside public holdings in a crossover structure, offering indirect access to private innovation.

What are the main risks of innovation investing?

Emerging technologies can be unpredictable, valuations may fluctuate significantly, and many promising businesses fail to achieve commercial success. Active growth funds can also underperform during periods when investors favor more defensive sectors.

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Disclosures:

Investing involves risk, including possible loss of principal. Private market investments are speculative, illiquid, and may not be suitable for all investors. Access to private investments is often limited to accredited investors and may involve significant restrictions. ETFs with exposure to private companies may face additional risks, including valuation uncertainty, limited liquidity, and structural constraints. Past performance is not indicative of future results. This material is for informational purposes only and should not be considered investment advice or a recommendation.

Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.

By Joel Shulman

For decades, investing in private companies was largely reserved for venture capital firms, institutional investors, and accredited individuals. Today, investors have more opportunities than ever to gain exposure to private markets, including some of the world’s most innovative companies before they go public.

What is private market investing?

Private market investing refers to investing in companies whose shares are not traded on public stock exchanges. These businesses may be startups, late-stage private companies, or firms preparing for an eventual initial public offering (IPO). Unlike public stocks, private investments are typically less liquid, less transparent, and often require investors to hold their positions for several years.

Can retail investors invest in private companies?

One of the most common questions investors ask is whether retail investors can invest in private companies. The answer is increasingly yes, although access remains more limited than in public markets. Retail investors can gain exposure through specialized funds, private market platforms, interval funds, and certain exchange-traded funds (ETFs) that hold stakes in private companies. In many cases, direct investments still require accredited investor status, but new investment vehicles have expanded access significantly.

The rise of pre-IPO investing

Another growing area of interest is pre-IPO investing. Investors are often attracted to companies that have achieved significant scale and growth before going public. In some cases, private shares become available through secondary markets, tender offers, or funds that purchase stakes from existing shareholders.

Can retail investors participate in pre-IPO investments? While opportunities remain limited compared with institutional investors, the answer is increasingly yes. Several funds and investment platforms now provide indirect exposure to private companies that may eventually pursue an IPO.

What happens to pre-IPO shares after the IPO?

Investors should also understand what happens to pre-IPO shares after an IPO. Typically, private shares convert into publicly traded shares, although investors holding these shares may be subject to lock-up periods that restrict immediate selling. Once these restrictions expire, these shareholders can generally sell any or all of their holdings on public exchanges like any other publicly traded company.

Risks of investing in private companies

Of course, investing in private companies involves meaningful risks. Valuations are often less transparent than those of public companies. Financial information may be limited, liquidity can be constrained, and investment timelines may be measured in years rather than months. Some private companies never reach or pursue an IPO or acquisition.

Despite these risks, investor interest continues to grow. Much of this value creation may present growth opportunities, accompanied by significant risks. As a result, investors are increasingly seeking exposure to innovative businesses earlier in their growth journeys.

Where pre-IPO interest is concentrated today

Many investors may also wonder about pre-IPO opportunities today. While specific opportunities change constantly, recent coverage of areas such as artificial intelligence, cloud infrastructure, fintech, cybersecurity, defense technology, and space technology continues to attract investor attention. Companies operating in these industries often remain private longer than in previous decades, creating substantial demand for private-market access.

Why this matters for portfolio construction

The growth of private market investing reflects a broader shift in how investors think about portfolio construction. Rather than relying exclusively on public stocks and bonds, investors are increasingly exploring private assets as a way to gain exposure to innovation, diversification, and long-term growth opportunities.

The takeaway

As access expands, investors should approach private markets with both optimism and discipline. Understanding liquidity constraints, valuation risks, and investment horizons remains essential. For those willing to accept these tradeoffs, private markets can provide access to compelling growth stories before they reach public exchanges.

FAQ

Can retail investors invest in private companies?

Increasingly, yes. Access remains more limited than in public markets, but specialized funds, private market platforms, interval funds, and certain ETFs that hold stakes in private companies now provide indirect exposure for retail investors. Direct private placements typically still require accredited investor status.

What is pre-IPO investing?

Pre-IPO investing means buying shares in companies that are still private but may eventually go public. Private shares can become available through secondary markets, tender offers, or funds that purchase stakes from existing shareholders.

What happens to pre-IPO shares after the IPO?

Pre-IPO shares typically convert into publicly traded shares. Holders may be subject to lock-up periods that restrict immediate selling. Once those restrictions expire, shareholders can generally sell on public exchanges.

What are the main risks of private market investing?

Less transparent valuations, limited financial information, restricted liquidity, multi-year holding periods, and the possibility that a company never reaches an IPO or acquisition. Private investments are speculative and may not be suitable for all investors.

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Disclosures:

Investing involves risk, including possible loss of principal. Private market investments are speculative, illiquid, and may not be suitable for all investors. Access to private investments is often limited to accredited investors and may involve significant restrictions. ETFs with exposure to private companies may face additional risks, including valuation uncertainty, limited liquidity, and structural constraints. Past performance is not indicative of future results. This material is for informational purposes only and should not be considered investment advice or a recommendation.

Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.

By Joel Shulman

In every major innovation cycle, investors eventually ask the same question: which companies, with durable moats, can actually last?

Hype can move markets in the short term. But durable value creation usually requires something deeper: a moat. (See Investopedia’s definition of an economic moat.)

For ERShares, the search for moat is central to the XOVR investment story. XOVR is not designed around short-term headlines or one-time IPO speculation. It is designed around a long-term framework for identifying companies that may become category-defining leaders across public and private markets.

As Eva Ados, Chief Investment Strategist at ERShares, often explains: “We are not looking for companies that are popular for a moment. We are looking for companies with the potential to build durable moats and define categories over time.”

What is a moat in investing?

A moat is a company’s durable competitive advantage. It is what may allow a company to protect its market position, maintain pricing power, scale efficiently, and resist competition over time.

Moats can come from many sources. A company may have a technology moat, a network-effect moat, a cost moat, a data moat, a distribution moat, an infrastructure moat, a brand moat, or a regulatory or operational advantage that is difficult for competitors to replicate.

For long-term investors, moat matters because innovation alone is not enough. A company can be exciting, but if competitors can easily copy its product or business model, the long-term investment case may be weaker.

The strongest companies often combine innovation with defensibility. They do not simply participate in a trend. They help shape the trend and create barriers around their leadership position.

Why ERShares connects moats to its VC lens

ERShares developed its proprietary Entrepreneur Factor methodology after years of research into how venture capital investors identify exceptional companies. The methodology includes 18 attributes that seek to identify businesses with long-term category leadership potential.

A VC-style investor does not only ask whether a company is growing. The deeper question is whether the company can keep growing while defending its position as the market evolves.

That is where moat analysis becomes important.

Eva Ados describes the ERShares approach this way: “Our VC lens is designed to look beyond today’s numbers and ask whether a company has the qualities to become a category leader. Moat is a major part of that question.”

This approach has historically helped ERShares identify major public-market winners early, including several companies that later became part of the Magnificent 7. These companies did not become dominant only because they were innovative. They became dominant because they built powerful ecosystems, platforms, distribution advantages, scale advantages, and other forms of competitive defensibility.

Why moats matter in the AI era

Artificial intelligence may create enormous opportunities, but it may also create major hype cycles. Many companies will claim exposure to AI. Far fewer may build durable competitive advantages from it.

In the AI era, moats may come from compute infrastructure, proprietary data, distribution, customer lock-in, model performance, hardware ecosystems, capital intensity, technical talent, or the ability to operate at massive scale.

That is why ERShares believes investors should look beyond labels. It is not enough for a company to be associated with AI, space, robotics, defense technology, or next-generation infrastructure. The more important question is whether the company has the ability to defend and expand its leadership over time.

As Eva Ados puts it: “In innovation investing, the word ‘moat’ matters because not every exciting company becomes a lasting company. We want to identify the companies that can build defensible leadership, not just capture attention.”

How XOVR applies moat thinking across public and private markets

XOVR was designed as the first ETF to provide exposure to select private companies alongside public equities in one ETF structure. The fund reflects the belief that the next generation of category-defining companies may be created across both public and private markets.

This matters because many companies with emerging moats may remain private longer. By the time they reach the public markets, a meaningful part of their value creation may already have occurred.

XOVR applies ERShares’ VC lens across public equities and select private-company exposure. The goal is to identify companies that may have the potential to develop or maintain durable competitive advantages over a long-term horizon.

This is why XOVR should not be viewed as a short-term trading vehicle built around one headline. It is a crossover ETF strategy designed for investors who want earlier access to category-defining companies while understanding that moat-building takes time.

Why SpaceX is a moat example, not just a headline

SpaceX gets significant attention because many investors are searching for ways to access SpaceX before a potential IPO. But for ERShares, SpaceX is not simply a headline.

SpaceX is an example of the type of company that may fit a moat-based, VC-style framework. Its potential competitive advantages may include launch infrastructure, cost structure, technical execution, satellite connectivity, scale, vertical integration, and the ability to operate across multiple areas of the space and communications ecosystem.

For XOVR, the SpaceX thesis is not about chasing a short-term IPO pop. It is about identifying a category-defining private company that may have durable competitive advantages over time.

Eva Ados summarizes the point this way: “SpaceX gets the attention, but the moat is what makes it strategically interesting. XOVR is about finding companies that may have the ability to build and defend leadership for years, not days.”

The takeaway

Moat is one of the most important concepts in long-term innovation investing.

The companies that define the future are usually not just the companies with exciting products. They are the companies that can build defensible leadership, scale advantages, ecosystem advantages, and long-term relevance.

XOVR was built around that idea. The fund applies ERShares’ VC lens to public equities and select private-company exposure in search of category-defining companies with the potential for durable moats.

The question is not only which companies are getting attention today.

The deeper question is which companies have the moat to matter tomorrow.

Key Questions

What is a moat in investing?

A moat is a durable competitive advantage that may help a company defend its market position and create long-term value. Moats can come from technology, scale, network effects, brand, data, infrastructure, cost advantages, or other hard-to-replicate strengths.

Why does XOVR focus on companies with moats?

XOVR is designed as a long-term crossover ETF strategy. ERShares uses its VC lens to identify companies that may have the potential to become category-defining leaders, and moat is an important part of that evaluation.

How does moat relate to AI investing?

AI may create major opportunities, but not every AI-related company will become a long-term winner. Moat analysis helps investors focus on companies that may have defensible advantages rather than short-term hype.

Is SpaceX an example of a moat company?

ERShares views SpaceX as an example of a category-defining private company that may have durable competitive advantages across launch infrastructure, satellite connectivity, scale, and technical execution. XOVR’s exposure to SpaceX is obtained indirectly through a special purpose vehicle.

Is XOVR only focused on SpaceX?

No, it’s not. SpaceX is an important holding, but XOVR is a broader crossover ETF strategy combining public equities with select private-company exposure.

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Disclosures:

Important information: Investing involves risk, including possible loss of principal. Private-company exposure involves additional risks. Past performance does not guarantee future results. Holdings are subject to change. References to individual companies are for illustrative purposes and should not be considered investment advice. XOVR’s exposure to SpaceX is obtained indirectly through a special purpose vehicle.

Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.

By Joel Shulman Direct answer: XOVR was designed for investors who want to access category-defining companies as early as possible, similar to how venture capital investors think, while understanding that real value creation often requires a long-term horizon. ERShares applies its proprietary Entrepreneur Factor methodology across public equities and select private-company exposure to identify companies that may define the next innovation cycle. Most investors are asking one question: How can I invest in SpaceX before the IPO? But the better question may be: Who has the process to identify companies like SpaceX before they become obvious to the broader market? That is the bigger story behind XOVR. XOVR is not simply a SpaceX trade. It is not a space ETF. It is a crossover ETF strategy built around a VC lens, a long-term horizon, and the belief that the next generation of category-defining companies may be created before they ever become public.

Why the next market leaders may not be public yet

The investment landscape has changed. In the past, many transformational companies went public earlier in their growth cycles. Today, companies can remain private longer while they scale, raise capital, build infrastructure, and capture market share. That means some of the most important value creation may happen before public-market investors ever get access. This is especially relevant in areas such as artificial intelligence, AGI infrastructure, space technology, robotics, defense technology, next-generation communications, and advanced computing. “Future market leadership may emerge from companies across both public and private markets.”

What is the XOVR crossover approach?

XOVR was designed as the first ETF to provide exposure to select private companies alongside public equities in one ETF structure. The strategy is designed for investors who want access to category-defining companies as early as possible, while recognizing that these companies often require a long-term investment horizon. XOVR is not designed for investors looking only for a short-term SpaceX IPO pop. It is built around a longer-term view: the most important companies of the next decade may be identified before they become obvious to the broader market.

How ERShares applies a VC lens

ERShares developed its proprietary Entrepreneur Factor methodology after years of research into how venture capital investors identify exceptional companies. The methodology includes 18 attributes that seek to identify companies with long-term category leadership potential. These attributes include innovation, leadership, scalability, disruption, competitive positioning, and the ability to create or dominate large markets. This VC-style framework has historically helped ERShares identify major public-market winners early, including several companies that later became part of the Magnificent 7. The same lens that helped ERShares identify long-term public-market leaders is now being applied through XOVR across both public equities and select private-company exposure.

Why SpaceX fits the framework

SpaceX gets the attention, but the process is the real story. For ERShares, SpaceX is not included because it is trending. It is included because it fits the type of category-defining company the firm’s VC lens was designed to identify. SpaceX may be known primarily as a space company, but its relevance extends beyond rockets. It operates across launch infrastructure, satellite connectivity, communications, data networks, and the broader technology ecosystem. In a world increasingly shaped by AI, AGI, automation, and global connectivity, infrastructure companies may become even more important. That is why SpaceX fits into the broader XOVR thesis.

Why AI and AGI make crossover investing more important

Artificial intelligence is no longer just a technology theme. It is becoming a broad economic platform that may reshape software, semiconductors, data centers, robotics, financial services, healthcare, defense, energy infrastructure, and communications. As investors look ahead to more advanced AI systems and the possibility of AGI, one question becomes increasingly important: Where will the next generation of category-defining companies be created? Some will be public. Others may remain private for years. That is why a crossover approach may matter. Investors focused only on public equities may miss part of the value creation happening inside private companies before they reach the public markets.

Why long-term discipline matters

AI, AGI, private markets, and SpaceX can all create excitement. But excitement alone is not an investment process. Not every company associated with a major trend becomes a long-term winner. That is why ERShares focuses on a disciplined framework rather than short-term hype. The ERShares approach is designed to identify companies with the characteristics of long-term category leadership. XOVR was built for investors who want to think in years, not days.

The takeaway

The question is not just how to buy SpaceX. The deeper question is who has the process to find the next SpaceX. XOVR was designed for a market where the next Magnificent 7 may not be public yet. It combines public equities with select private-company exposure and applies ERShares’ VC lens to identify companies that may define the next innovation cycle. SpaceX gets the attention. But the process is the real story.

FAQ

Is XOVR a SpaceX ETF?

XOVR is not a space ETF. SpaceX is an important holding, but the fund is a broader crossover ETF strategy that combines public equities with select private-company exposure.

What does it mean to invest with a VC lens?

Investing with a VC lens means looking for companies with the potential to become category-defining leaders before they become obvious to the broader market. ERShares applies this approach through its proprietary Entrepreneur Factor methodology.

Why does XOVR include private-company exposure?

Many innovative companies are staying private longer. XOVR was designed to provide exposure to select private companies alongside public equities in one ETF structure.

Is XOVR a short-term SpaceX IPO trade?

No. XOVR is designed as a long-term strategy for investors who want exposure to category-defining companies across public and private markets.

Why does AI make private-market access more relevant?

AI may accelerate innovation across both public and private companies. Some of the companies shaping the AI and AGI era may remain private for years before entering public markets.

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Disclosures: Important information: Investing involves risk, including possible loss of principal. Investments in private companies involve additional risks, including limited liquidity, valuation uncertainty, and reliance on external structures. References to specific companies are for illustrative purposes only and do not represent all investments. There is no guarantee that any investment strategy will be successful. Holdings are subject to change. Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.

By Joel Shulman Direct answer: XOVR is not designed as a short-term SpaceX IPO trade or a space ETF. SpaceX is an important holding, but the broader XOVR story is the VC-style investment process that led ERShares to seek exposure to SpaceX and other category-defining companies. Many investors are asking how to invest in SpaceX before a potential IPO, and how to evaluate SpaceX exposure inside a public-market vehicle. The question is understandable. SpaceX is one of the most closely watched private companies in the world (see Reuters’ SpaceX coverage), with relevance across launch infrastructure, satellite connectivity, and the broader space economy. But for ERShares, the more important question is not only how to access SpaceX. The deeper question is: who has the process to find companies like SpaceX before they become obvious to everyone?

SpaceX gets attention, but the process is the story

XOVR’s SpaceX exposure is not based on a short-term headline. ERShares’ VC lens led the firm to SpaceX because SpaceX fits the type of category-defining company the Entrepreneur Factor methodology was designed to identify. That distinction matters. A short-term trader may focus only on whether SpaceX eventually goes public and whether there is an IPO-related move. A long-term investor may ask a different question: what companies could define the next decade of innovation, and how can investors access them earlier in the value-creation cycle?

XOVR is not a space ETF

XOVR should not be framed as a space ETF. It is a crossover ETF that combines public equities with select private-company exposure. SpaceX is an important holding, but the strategy is broader than one company or one industry. The fund is designed for investors who want exposure to category-defining companies across public and private markets. SpaceX is a proof point of the process, not the only reason the strategy exists.

Why ERShares’ VC lens matters

ERShares developed its proprietary Entrepreneur Factor methodology after years of research into how venture capital investors identify exceptional companies early. The methodology includes 18 attributes that seek to identify companies with long-term category leadership potential. This same VC-style approach has historically helped ERShares identify major public-market winners early, including companies that later became part of the Magnificent 7. The framework is now being applied through XOVR to both public equities and select private-company exposure.

Why long-term horizon matters

XOVR is not built for investors looking only for a quick SpaceX IPO pop. It is built for investors who want to access category-defining companies as early as possible, similar to how venture capital investors think, while understanding that real value creation often requires a long-term horizon. The best venture investors typically do not invest for a one-day event. They invest because they believe a company may compound value over many years. That is the mindset behind XOVR.

Why private-company exposure is increasingly relevant

More companies are staying private longer. That means investors who only wait for an IPO may miss a meaningful part of the value-creation cycle. XOVR was designed to address this shift by combining public equities with select private-company exposure inside an ETF structure. XOVR’s SpaceX exposure is obtained indirectly through a special purpose vehicle. Holdings can change over time, and investors should understand that private-company exposure involves additional risks. But the strategic point remains: XOVR was designed for a market where innovation is not limited to publicly traded companies.

The takeaway

SpaceX gets the attention. But the process is the real story. XOVR is a long-term crossover strategy built around ERShares’ VC lens, its Entrepreneur Factor methodology, and the belief that the next great companies may be created before they ever become public.

FAQ

Is XOVR a SpaceX ETF?

XOVR is not a space ETF or a pure SpaceX fund. It is a crossover ETF combining public equities with select private-company exposure.

How does XOVR get SpaceX exposure?

XOVR’s SpaceX exposure is obtained indirectly through a special purpose vehicle. Holdings are subject to change.

Is XOVR meant for short-term IPO speculation?

No. XOVR is positioned as a long-term strategy built around a VC-style investment lens and private-public crossover exposure.

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Disclosures: Important information: Investing involves risk, including possible loss of principal. Private-company exposure involves additional risks. XOVR’s exposure to SpaceX is obtained indirectly through a special purpose vehicle. Holdings are subject to change. Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.

By Joel Shulman Direct answer: Nvidia’s long-term growth illustrates why early identification, patience, and a disciplined innovation framework can matter. ERShares’ Entrepreneur Factor methodology seeks to identify companies with category leadership potential before their long-term opportunity becomes obvious. Nvidia is now widely viewed as one of the most important companies in the artificial intelligence era. It plays a central role in accelerated computing, data centers, AI infrastructure, gaming, robotics, and next-generation technology platforms. But Nvidia was not always obvious to the market. Before it became associated with artificial intelligence infrastructure, it was a company that required long-term vision. ERShares identified Nvidia early in its growth cycle, including when the stock was around $5. The lesson is not simply about one stock. The lesson is about how investors identify category-defining companies before they become consensus.

Why early innovation investing is hard

Transformational companies often look uncertain before they look inevitable. Their markets may be early. Their business models may be evolving. Their valuations may appear difficult to understand using traditional short-term metrics. Their long-term opportunity may require investors to look several years ahead. This is why many investors miss the early phase of major winners. By the time a company becomes obvious, the market may have already recognized much of the opportunity.

The role of the Entrepreneur Factor

ERShares developed its proprietary Entrepreneur Factor methodology after years of research into how venture capital investors identify exceptional companies. The methodology includes 18 attributes designed to evaluate whether a company has the potential to become a long-term market leader. These attributes include innovation, leadership, scalability, disruption, competitive positioning, and the ability to define or dominate a category. The framework is designed to evaluate the deeper traits of a company, not simply short-term market momentum.

What Nvidia teaches investors

Nvidia’s rise shows that category leadership can take years to become fully visible. The company’s role in AI infrastructure was built through years of investment, platform development, and positioning across multiple technology cycles. Investors who only recognized Nvidia after AI became a mainstream investment theme may have missed the earlier part of the story. That is the broader lesson: the most important companies often begin as underappreciated innovators before they become dominant platforms.

Why the AI era requires a long-term view

Artificial intelligence is reshaping semiconductors, software, data centers, cloud infrastructure, robotics, healthcare, defense technology, financial services, and energy demand. In this environment, investors may need a framework that can identify which companies are merely participating in a trend and which companies may become essential infrastructure for the future. A long-term horizon matters because transformational companies are not built in a quarter. They may require years of research, reinvestment, product development, and market adoption.

Why this connects to XOVR

The Nvidia example also helps explain why XOVR includes select private-company exposure. In the past, many major innovation leaders became public earlier in their growth cycles. Today, some of the most important companies may remain private longer. XOVR was designed for investors who want access to category-defining companies as early as possible, similar to how VCs invest, while understanding that real value creation often requires a long-term horizon. The fund combines public equities with select private-company exposure and applies ERShares’ VC lens across both markets.

The takeaway

Nvidia’s long-term story reinforces a central idea: the biggest winners are often not obvious early. A disciplined process, a VC-style lens, and a long-term horizon may help investors focus on companies with the potential to shape the future before the broader market fully recognizes them.

FAQ

Why is Nvidia relevant to ERShares’ investment process?

ERShares identified Nvidia early in its growth cycle, including when it was around $5, as part of a broader process focused on category-defining innovation companies.

What does Nvidia teach about AI investing?

Nvidia shows that AI leadership can be built over many years and that investors may need to identify infrastructure leaders before a trend becomes mainstream.

How does this relate to XOVR?

XOVR extends ERShares’ VC-style framework across public equities and select private-company exposure, reflecting the belief that future leaders may emerge in both markets.

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Disclosures: Important information: Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. References to individual companies are for illustrative purposes and should not be considered investment advice. Holdings are subject to change. Examples such as Nvidia are provided for illustrative purposes only and do not represent all investments or results achieved. Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.

By Joel Shulman Direct answer: Many innovation leaders are staying private longer, which means public-market investors may miss a meaningful part of the value-creation cycle. XOVR was designed to address this shift by combining public equities with select private-company exposure inside an ETF structure. The Magnificent 7 changed the way investors think about market leadership. Companies such as Nvidia, Microsoft, Apple, Amazon, Meta, Alphabet, and Tesla became dominant forces across artificial intelligence, cloud computing, e-commerce, semiconductors, software, digital advertising, and electric vehicles. But the next generation of market leaders may not follow the same public-market path. Some of the most important companies in artificial intelligence, space infrastructure, defense technology, robotics, fintech, and next-generation communications may remain private for longer periods of time. That creates a new challenge for investors: what if the next market giants are being built before they are publicly traded?

Why companies are staying private longer

Private companies today often have more access to capital than they did in previous market cycles. Late-stage private financing allows many businesses to scale, expand internationally, and build infrastructure before considering a public listing. As a result, a company may create significant value while it is still private. For investors who can only access companies after an IPO, this shift may reduce the opportunity to participate in earlier phases of growth. The question is no longer only which public companies are leading today. The question is how investors can gain exposure to category-defining companies before they become broadly available in public markets.

What is crossover investing?

Crossover investing combines public-market exposure with select private-company exposure. XOVR was designed as the first ETF* to provide exposure to select private companies alongside public equities in one ETF structure. The strategy reflects the belief that investors may need both public and private exposure to participate in the full innovation cycle. This does not mean XOVR is a single-company bet. It also does not mean XOVR is designed for a one-time IPO pop. The fund is built around a long-term process that seeks to identify category-defining companies early.

Why a VC-style framework matters

ERShares developed its Entrepreneur Factor methodology after years of research into how venture capital investors evaluate exceptional companies. The methodology includes 18 attributes that seek to identify businesses with long-term leadership potential. This framework has historically helped ERShares identify major long-term winners early, including several companies that later became known as part of the Magnificent 7. The same VC lens now informs the way ERShares evaluates select private-market opportunities within XOVR.

SpaceX as a private-market example

SpaceX has become one of the most searched private-company investment topics because many investors want access before a potential IPO. But for ERShares, the SpaceX story is about more than one company. SpaceX is an example of why earlier access may matter in a market where category-defining companies can stay private for a long time. XOVR’s SpaceX exposure is obtained indirectly through a special purpose vehicle. SpaceX is an important holding, but XOVR is not a space ETF and not a pure SpaceX fund. It is a broader crossover strategy designed for investors who want exposure to select private companies alongside public equities.

What long-term investors should understand

The best venture investors often seek to identify companies before they are fully understood by the market. They do not invest with a one-day horizon. They invest with the expectation that exceptional companies may take years to build, scale, and compound value. XOVR was built for investors who think in a similar way: investors who want access to category-defining companies as early as possible, while understanding that real value creation often requires patience.

The takeaway

The next market giants may not all be public yet. XOVR was designed for this new reality: a market where innovation can happen in both public and private companies, and where earlier access may become increasingly important for long-term investors.

FAQ

Why does earlier access matter?

Earlier access represents a different point of entry in a company’s lifecycle, which may involve different risks and return characteristics.

Is XOVR only focused on private companies?

No. XOVR combines public equities with select private-company exposure in one ETF structure.

Is XOVR a SpaceX-only fund?

No. SpaceX is an important holding, but XOVR is a broader crossover ETF strategy focused on public and private category-defining companies.

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Disclosures: Important information: Investing involves risk, including possible loss of principal. Private-company exposure involves additional risks. Past performance does not guarantee future results. Holdings are subject to change. * Basis of “first” claim: ERShares review of U.S.-listed open-end 1940 Act ETFs and public filings as of Aug 29, 2024; requires daily creations/redemptions and a single ETF portfolio with private-company exposure reflected in daily NAV alongside public equities. Excludes interval funds, closed-end funds, BDC/PE-manager ETFs, SPACs, and products without private-company exposure in NAV. Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.

By Joel Shulman Direct answer: XOVR is built around a venture-capital-style investment lens and a long-term horizon. The strategy seeks exposure to companies across public and select private markets that exhibit characteristics associated with innovation and potential long-term growth, often earlier in their development lifecycle. Before a business becomes a household name, it may be misunderstood, debated, or overlooked by investors using only short-term metrics. Many category-defining companies go through years of experimentation, reinvestment, volatility, and market skepticism before their leadership becomes widely recognized. That is why ERShares uses a VC lens. The firm developed its proprietary Entrepreneur Factor methodology after years of research into how venture capital investors identify exceptional companies early. The framework evaluates the underlying characteristics that may allow a company to create a new category, disrupt an existing market, or become a long-term innovation leader.

What is a VC lens in investing?

A VC lens is a long-term investment approach inspired by how venture capital investors evaluate companies. Venture investors typically look beyond near-term earnings or quarterly price moves. They focus on the quality of the business, the size of the opportunity, the strength of the leadership team, the durability of the competitive advantage, and the possibility that a company could become much larger than the market currently expects. ERShares applies that mindset to public markets and, through XOVR, to select private-market exposure. The goal is not to chase every hot theme. The goal is to identify businesses that may have the potential to become category-defining companies over time.

The Entrepreneur Factor methodology

The Entrepreneur Factor is ERShares’ proprietary research framework. It includes 18 attributes that seek to identify companies with the characteristics of exceptional long-term businesses. These attributes include innovation, leadership, scalability, market disruption, competitive positioning, and long-term growth potential. This framework evaluates innovative companies but does not ensure it will identify outperformers. Nvidia is one example of a company ERShares identified early in its growth cycle, including when it was around $5. The relevance is not simply the stock price. The relevance is the process: identifying the characteristics of a category leader before the broader market fully understands the opportunity. Examples such as Nvidia are provided for illustrative purposes only and do not represent all investments or results achieved.

Why the same process led to SpaceX

ERShares’ VC lens is also what led the firm to SpaceX. SpaceX is not included in XOVR because it is trending or because investors are talking about a possible IPO. SpaceX fits the type of category-defining company the Entrepreneur Factor framework was designed to identify. For ERShares, SpaceX is an example of a business that may represent long-term innovation across launch infrastructure, satellite connectivity, and the broader space economy. But SpaceX is not the entire XOVR story. It is a proof point of the broader process.

Why XOVR applies the VC lens across public and private markets

Adding private companies came naturally to ERShares because the firm’s methodology originated from studying how venture investors think. ERShares had already been applying a VC-style framework to public markets. XOVR extends that framework into a structure that combines public equities with select private-company exposure. This matters because many of the most important companies are staying private longer. If investors wait until every company reaches the public markets, they may miss a meaningful portion of the value-creation cycle. XOVR was designed for investors who want access to category-defining companies as early as possible, while understanding that real value creation often requires a long-term horizon.

The takeaway

The strategy is not designed to pursue short-term event-driven opportunities. It is not simply a SpaceX headline. It is a long-term crossover strategy built around a VC lens, ERShares’ Entrepreneur Factor methodology, and the belief that the next great companies may be created before they ever become obvious to the broader market.

FAQ

What is the ERShares VC lens?

The ERShares VC lens is a research approach inspired by how venture capital investors identify exceptional companies early, with a focus on long-term category leadership potential.

What is the Entrepreneur Factor?

The Entrepreneur Factor is ERShares’ proprietary methodology built around 18 attributes that seek to identify companies with the potential to become long-term innovation leaders.

Is XOVR designed for short-term SpaceX IPO speculation?

No. XOVR is designed as a long-term strategy for investors seeking exposure to category-defining companies across public equities and select private-company exposure.

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Disclosures: Important information: Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. Holdings are subject to change. References to individual companies are for illustrative purposes and should not be considered investment advice. Joel M. Shulman, PhD, CFA, is CEO and CIO of ERShares and the architect of the Entrepreneur Factor® and ERShares’ VC lens investment framework, which applies venture-style research principles to public-market investing.