Eva Ados, Chief Investment Strategist, and Joel Shulman, Ph.D, CFA, Founder and Chief Investment Officer of ERShares, joined Keith Black, Managing Director of RIA Channel, to discuss the democratization of private equity investing.
ERShares created the Private-Public Crossover ETF (XOVR) to give retail investors access to private equity. Many investors and advisors find it difficult to invest in traditional private equity (PE) funds, as these funds often require large minimum investments, long holding periods, and accredited investor or qualified purchaser status. The ETF charges lower fees than traditional PE funds, with a gross annual expense ratio of 0.75%.
During the interview, Ados remarked that it is becoming increasingly important to have access to investments in private companies, as companies are staying private longer, often times accounting for greater value creation outside the investible public equity markets. The ETF’s investment process is derived from the Entrepreneur Factor (ER30TR) index, which has a 20-year history of tracking investments in public companies selected using a venture capital methodology tracking 18 company-specific attributes. From its June 2005 inception to the end of 2025, the ER30TR index outperformed the Nasdaq 100 Index and doubled wealth relative to the S&P 500 and Russell 1000 growth indices. The success of the methodology is attributed to the early identification of growth stocks that subsequently outperform, such as the Magnificent Seven.
The XOVR ETF holds 30 high-growth public companies, rebalanced quarterly, and allocates 10% to 15% to privately held companies. As of February 3, 2026 approximately 10% of the fund is invested in a Special Purpose Vehicle (SPV) with exposure to SpaceX, which ERShares believes has characteristics similar to today’s Magnificent Seven companies. The ETF can be held as a satellite allocation alongside core market exposure to passive index ETFs.
Disclosures:
XOVR invests to a limited degree in privately offered securities to gain exposure to certain private entrepreneurial companies.
Management Risk: The Adviser’s reliance on its strategy and its judgments about the value and potential appreciation of securities in which the Fund invests may prove to be incorrect, including the Adviser’s tactical allocation of the Fund’s portfolio among its investments. The ability of the Fund to meet its investment objective is directly related to the Adviser’s proprietary investment process.
Changing or unforeseen market dynamics could decrease the short-term or long-term effectiveness of the EF model. The Adviser’s assessment of the relative value of securities, their attractiveness and potential appreciation of particular investments in which the Fund invests may prove to be incorrect and there is no guarantee that the Adviser’s investment strategy will produce the desired results.
Large Shareholder Risk: The Fund has a majority shareholder and may experience adverse effects when this large shareholder purchases or redeems large amounts of shares of the Fund. Such large shareholder redemptions may cause the Fund to transfer portfolio securities in connection with the redemption of Creation Units at times when it would not otherwise do so, which may negatively impact the Fund. If the majority shareholder were to redeem all of its shares this could impact the ability of the Fund to continue its operations. In addition, a large redemption could result in the Fund’s current expenses being allocated over a smaller asset base, leading to an increase in the Fund’s expense ratio.
Non-Diversification Risk: The Fund is non-diversified. This means that it may invest a larger portion of its assets in a limited number of companies than a diversified fund. Because a relatively high percentage of the Fund’s assets may be invested in the securities of a limited number of companies that could be in the same or related economic sectors, the Fund’s portfolio may be more susceptible to any single economic, technological or regulatory occurrence than the portfolio of a diversified fund.
Privately-Offered Securities Risk: Privately-offered securities include those which are issued without registration under the Securities Act of 1933 (the “1933 Act”), pursuant to Rule 144A or Regulation S under the 1933 Act, or Section 4(a)(2) of the 1933 Act. Privately-offered securities are not exchange-traded and are subject to liquidity risk, may be difficult to value, may be difficult to sell because of regulatory restrictions on resale, provide fewer financial disclosures than publicly-offered or exchange-traded securities, and may be subject to significant brokerage commissions. Limitations on resale may prevent the Fund from disposing of these securities at prices that reflect fair value. To the extent the Fund acquires privately-offered securities through a privately-offered special purpose vehicle (“SPV”), the Fund may also be subject to management and performance fees of the SPV. SPVs are not registered under the Investment Company Act of 1940 (the “1940 Act”) and therefore, an investor, such as the Fund does not benefit from the regulatory protections of the 1940 Act.
For additional disclosures, visit https://entrepreneurshares.com/disclosures/. The fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information and may be obtained by calling +1 (617) 279 0045 or by visiting www.ershares.com. Read it carefully before investing.
Distributed by Foreside Financial Services, LLC.