XOVR is A $1.5 Billion ETF That Holds SpaceX Pre-IPO, But The Returns Are Awful

"ERShares Private-Public Crossover ETF (NASDAQ:XOVR) attempts to solve a problem that has frustrated growth-focused investors for years: how to access high-conviction private companies before they go public while holding a diversified portfolio of public growth stocks. With $1.5 billion in assets and a 0.75% expense ratio, XOVR offers retail investors exposure to pre-IPO firms like SpaceX, Anduril, and Klarna alongside public tech leaders. The question is whether this hybrid approach delivers or simply adds complexity without commensurate returns."

"The return engine relies on two mechanisms: capital appreciation from high-conviction public growth stocks like NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Meta (NASDAQ:META), and Palantir (NASDAQ:PLTR), and early-stage value capture from private companies before they list. The public equity sleeve provides liquidity and market-linked returns, while the SPV allocation theoretically allows investors to participate in value creation before public market pricing - though SPVs introduce valuation lag and liquidity constraints that complicate performance assessment."

XOVR has $1.5 billion in assets and charges a 0.75% expense ratio. The ETF allocates roughly 10–11% to private equity via SPVs, with SpaceX representing the largest private holding at 10.05%, and concentrates remaining holdings in technology (31.5%), healthcare (14.7%), and communication services (14.4%). The strategy seeks returns from capital appreciation in high-conviction public growth stocks and early-stage value capture from private pre-IPO companies. SPVs introduce valuation lag and liquidity constraints that complicate performance assessment. Performance has lagged: year-to-date -14.3%, one-year -11.31% versus the S&P 500's +12%, and five-year -34% versus the S&P 500's +74.77%.

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