Don’t want to invest in Elon Musk? Two new ETFs explicitly exclude him

In anticipation of SpaceX's initial public offering, numerous stories have emerged about early employees and investors poised to gain significant profits from their connections with Elon Musk. However, Musk's controversial actions, including his engagement with DOGE and notable remarks on social media, have created a backlash. This sentiment has inspired an investment strategy aimed at avoiding his enterprises altogether. Subversive Capital, an ETF creator aptly named, has tapped into this trend by introducing two new exchange-traded funds (ETFs) that explicitly exclude Musk's companies. Registered by Tidal Trust I and affiliated with Subversive Markets Lab LLC, these ETFs are designed to provide an alternative for investors who prefer to steer clear of the world’s wealthiest individual. Investing without inadvertently supporting Musk can be challenging, especially for those whose portfolios are linked to widely held indices such as the S&P 500 and Nasdaq 100. Recently, SpaceX was included in the Nasdaq 100, further complicating matters given that it is also part of FTSE Russell and MSCI indexes. Additionally, Tesla has long been a favorite among mutual funds, particularly those focusing on large-cap and growth stocks. The newly launched ETFs, named the Nasdaq-100 Ex-Elon Enterprises ETF and the S&P 500 Ex-Elon Enterprises ETF, aim to exclude Musk's prominent ventures. According to their prospectus, the funds will omit Tesla (TSLA) and Space Exploration Technologies Corp. (SPCX). While Musk's other ventures, such as Neuralink and The Boring Company, are not publicly traded, the potential exists for these funds to also exclude future companies closely tied to him. The objective of the Ex-Elon funds is to achieve capital growth by investing in a broad range of large-cap U.S. equity securities while avoiding those associated with Musk. The SEC filing details that this includes companies founded, controlled, or led by Musk himself. Although these funds are legitimate investment options set to launch soon, there's a playful undertone to their creation. Prior to the Ex-Elon ETFs, Subversive gained attention for other funds aimed at allowing everyday investors to mimic the financial strategies of the elite. One such fund involves stocks favored by Democratic lawmakers and their families, while another reflects holdings of their Republican counterparts. It remains uncertain whether investors will embrace the Ex-Elon ETFs, identified by the tickers QQNE and SPNE, or if they will outperform funds that include Musk's enterprises. However, they undeniably cater to a growing desire to distance from Musk's influence in investing, which could also be seen as an opportunity to provoke him, given his previous disdain for those who shorted Tesla stock.