In a recent appearance on Fox Business’ “Making Money with Charles Payne,” Eva Ados, COO of EntrepreneurShares LLC, shed light on a groundbreaking financial product that aims to open the gates of private equity investing to the everyday retail investor. The focus of the discussion was the ERShares Crossover ETF (XOVR), an innovative product designed to offer access to high-profile private companies, notably SpaceX.
Democratizing Investment Opportunities
Eva Ados emphasized the mission of ERShares to democratize access to investments traditionally reserved for accredited investors or institutions. “Finally. We want to democratize it and give access to everyone really to get access to these names, SpaceX. Right now, XOVR, the crossover ETF from ER Shares is the only ETF that offers investors and retail investors access to private equity and especially, SpaceX, which many people want to get into and it’s so hard,” Ados stated, highlighting the exclusivity of investing in companies like SpaceX before this ETF’s introduction.
The Structure of XOVR
The XOVR ETF is uniquely structured, with 85% of its portfolio tracking the Entrepreneur 30 Index, a selection of what Ados referred to as the “30 best entrepreneurial companies” identified using a venture capital (VC) research approach. This index has shown remarkable performance, up over 2,000% since its inception in 2005 and up 62% this year alone. The remaining 15% of the fund is invested in private equity, with SpaceX being the current largest holding, entering at a valuation of $250 billion or $1.35 per share.
Ados explained, “Since then, it has more than doubled the Q’s and the S&P. And for the year, we’re up 62%, the index.” This performance underscores the potential of early investment in high-growth companies, a strategy ERShares has mastered.
Market Outlook and Investment Strategy
Reflecting on the broader market, Ados expressed a bullish outlook, particularly for high-growth and ultra-high-growth companies. “I love what I see here. I’ve been optimistic all year…I’m getting even more optimistic now,” she said, predicting a strong end to the year and an even better 2025. She highlighted the trend of companies choosing to remain private longer due to regulatory pressures and the strategic advantage this provides for investors who can access these investments early through vehicles like XOVR.
The Future of Private Equity for Retail Investors
The conversation also touched on the broader implications of making private equity investments accessible to a wider audience. Ados lamented the past exclusivity of these investment opportunities, “It made me sad all this time that friends of mine and people I know and investors that may not be accredited or might not have $3M to put into SpaceX, through any sort of platform or closed-end fund, they couldn’t get in.” With XOVR, ERShares aims to level the playing field, allowing more investors to share in the growth of transformative companies like SpaceX.
I’d like to point out that Eva Ados’s appearance on Fox Business not only highlighted the innovative approach of ERShares but also underscored a significant shift in how retail investors can engage with the private markets. The XOVR ETF certainly represents a new frontier in investment, potentially heralding a future where the barriers between private and public markets continue to blur, offering more inclusive investment opportunities.
As Ados concluded, “We finally want to democratize this and give access to really anyone, to have access to these names that are going to do great in the future,” suggesting a promising horizon for both investors and visionary companies in the evolving landscape of investment.
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