Elon Musk, CEO of SpaceX [AFP]
Elon Musk, CEO of SpaceX [AFP]

Exchange-traded funds that exclude Tesla, SpaceX and other companies linked to Elon Musk are set to launch in the United States, targeting investors who want broad market exposure without backing Musk-affiliated firms.

Bloomberg reported Thursday that startup asset manager Subversive has filed paperwork to launch ETFs tracking the Nasdaq 100 and S&P 500 indexes while excluding companies founded or controlled by Musk.

Subversive has proposed the ticker "QQNE" for the Nasdaq 100-tracking product and "SPNE" for the S&P 500-tracking product.

The planned funds come after SpaceX was added to several major stock indexes in quick succession following its listing.

Within less than a month of going public, SpaceX was included in the FTSE Russell, MSCI and Nasdaq 100 indexes one after another.

Analysts called it unusual for a money-losing company to be added to major indexes so soon after its listing. Index providers are widely seen to have revised their fast-track rules ahead of SpaceX's IPO to make the inclusions possible.

Markets had anticipated that SpaceX's index inclusion would automatically channel tens of trillions of won in passive funds tracking the Nasdaq 100 and similar indexes into the company.

The new ETFs are designed for investors who want to capture broader index returns while avoiding exposure to Musk-linked companies.

The US ETF market has seen a rapid rise in what industry observers call hyper-personalized funds — products that reflect individual values and preferences rather than simply targeting a sector or investment style.

According to Bloomberg Intelligence, 214 new ETFs launched last month alone, the highest monthly total in history.

However, concerns are emerging about excessive product fragmentation.

Nate Geraci, president of Novadieus Asset Management, said he understood why ETF issuers would seek to profit from Musk's polarizing appeal, but added that the market is being "sliced too thin."


sjy@heraldcorp.com