ERShares Expands Access to High-Growth Private Companies and Sets a New Standard for Private Equity Valuation in ETFs
- Editor
- Feb 26
- 2 min read
Whats Happening:
ERShares, the issuer of the XOVR ETF, is leading the financial industry by integrating private equity into its portfolio. This innovative approach allows retail investors to access high-growth private companies before they go public, addressing the issue of companies staying private longer and limiting access to only accredited and institutional investors.
Key Moves:
ERShares launches XOVR ETF, integrating private equity into its portfolio
XOVR ETF includes SpaceX (10% of total holdings) and exposure to Klarna
ERShares implements rigorous valuation methodologies for private equity investments
By The Numbers:
SpaceX currently represents 10% of XOVR ETF's total holdings
Historical IPO valuations of around $560 million for high-potential ventures
ERShares adjusts valuations based on multiple factors for accurate NAV
Key Quotes:
"As the IPO landscape evolves, many high-profile companies, including SpaceX, are delaying their public offerings. This limits access to only accredited and institutional investors, leaving retail investors out of some of the most significant wealth-creation events," said Eva Ados, Chief Investment Strategist at ERShares.
"We continue to provide evidence of how this private-public model works," added Dr. Shulman. "Our approach will soon become clear as upcoming IPOs unfold, reinforcing the value of integrating high-growth private firms into a diversified portfolio."
"Valuing private equity within an ETF requires a rigorous, multi-factor approach that accounts for market-driven price discovery mechanisms," Dr. Shulman explained.
Bottom Line:
ERShares is pioneering a new approach to ETF investing by integrating private equity into its XOVR ETF. This strategy aims to democratize access to high-growth private companies for retail investors, addressing the issue of delayed IPOs and limited access to wealth-creation opportunities. The fund's rigorous valuation methodologies and commitment to transparency set a new standard for private equity valuation in ETFs.
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