New 'Ex-Elon' ETFs Exclude Tesla, SpaceX from Indexes

Subversive Markets Lab LLC has filed with the U.S. Securities and Exchange Commission (SEC) to launch two new exchange-traded funds (ETFs) targeting the Nasdaq-100 and S&P 500 indexes, while excluding companies founded, controlled, or led by Elon Musk. The proposed 'Ex-Elon' ETFs aim to provide exposure for investors who wish to avoid Musk-linked companies like Tesla (TSLA) and SpaceX.

Product Details

The two proposed ETFs are:

• 'Ex-Elon Nasdaq-100 ETF': Tracks the Nasdaq-100 index, excluding companies founded or led by Musk.
• 'Ex-Elon S&P 500 ETF': Tracks the S&P 500 index with the same exclusions.

Tesla (listed in both indexes) and SpaceX (unlisted) would be excluded from these funds.

Pricing and Availability

The expense ratios and launch date have not been announced. The filing is currently under SEC review.

Competition

These funds compete with traditional index ETFs like QQQ (Invesco QQQ Trust) and SPY (SPDR S&P 500 ETF), but offer a unique value proposition for investors seeking to avoid Musk exposure. While ESG funds exclude certain companies, 'Ex-Elon' is the first to specifically target Musk.

Potential Impact on the Company

If the funds attract significant capital, it could create mild selling pressure on Tesla shares as the funds sell holdings to avoid exposure. However, the impact is likely limited given Tesla's high trading volume.