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.
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.