New ETFs offer investment on Wall Street “without Elon Musk”

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Now, an American hedge fund company is trying to ride on these disappointments and is launching two hedge funds “without Elon Musk”. The investment company Subversive ETFs submitted an application to the American Securities and Exchange Commission (SEC) to launch two ETFs: QQNE for the NASDAQ 100 index without a mask, and SPNE for the S&P 500 index without a mask. According to the report to the SEC, the purpose of the ETFs is to “provide an increase in value through exposure to a variety of securities of large companies, while excluding securities of companies founded, controlled or managed by Elon According to the report, Subversive, which usually launches niche ETFs based on political or social trends, believes that the target audience is investors who have concerns related to corporate governance in Musk’s companies, or to stock volatility and political risks.

There are also certificates that sanctify Musk

Bloomberg noted that Wall Street investors also have the opposite options, such as ETFs leveraged on Tesla shares or SpaceX shares. According to Bloomberg, the ETF industry that started as an index investment industry has expanded into various niche products, and now it remains to be seen whether there will be demand for investment portfolios without Musk. An expert interviewed there estimated that since Musk is a controversial figure, it makes sense that there would be someone who would try to profit from it, but it is possible that launching an ETF based on sentiment towards a specific person is already too niche a matter.

On the investment website MarketWatch, the attitude was even more skeptical. Dave Nadig, director of the research department at ETF.com, a company specializing in the field, said that this is just another gimmick, and estimated that the plan is to attract investors who are angry enough with Musk, but the narrow focus of the ETF will lead to them not accumulating significant assets. As an example of an ETF in a similar style, he mentioned “Inverse Jim Cramer”, an ETF that was launched with the aim of investing against the recommendations of commentator Jim Cramer from CNBC, and was closed after less than a year due to lack of interest.

A company of political investments

The Subversive ETFs website has examples of two other ETFs it launched, GOP and NANC, the first invests according to purchases and sales of Republican congressmen and the second according to Democrats. According to the company’s data, at the end of June GOP had assets amounting to 88.5 million dollars and NANC had 282 million dollars. In the GOP, the largest holdings are the construction company Comfort Systems, Intel and J. Pi Morgan, and at NANC in Nvidia, Applied Materials and Alphabet.