New 'Ex-Elon' ETFs eliminate Tesla and SpaceX from their indexes.

      Subversive ETFs has submitted a filing with the SEC for two “Ex-Elon” exchange-traded funds: the Nasdaq-100 Ex-Elon Enterprises ETF (QQNE) and the S&P 500 Ex-Elon Enterprises ETF (SPNE). These funds aim to track their respective indexes while excluding any company that is “founded, controlled or led by” Elon Musk, currently encompassing Tesla and SpaceX. This initiative was prompted by SpaceX's rapid inclusion in the Nasdaq-100, compelling passive investors to incorporate it into their portfolios. The actively managed funds, which come with higher fees, are expected to be launched around 21 September 2026.

      Subversive ETFs, based in New York, has developed a way for investors to engage with the broader market without investing in Musk's companies, as reported by Bloomberg. One fund focuses on the Nasdaq-100, while the other targets the S&P 500, with both funds excluding firms “founded, controlled or led by” Musk.

      The specific products are the Nasdaq-100 Ex-Elon Enterprises ETF and the S&P 500 Ex-Elon Enterprises ETF, identified with ticker symbols QQNE and SPNE, respectively. Current exclusions leave out Tesla and SpaceX, and additional Musk companies like Neuralink and the Boring Company are not publicly traded. If OpenAI, which Musk co-founded, decides to list in the future, it could also be excluded.

      These funds will be actively managed and strive to maintain at least 80% of their assets aligned with their respective indexes minus the excluded companies. Typically, active management incurs higher fees than standard index trackers.

      The motivation behind creating a fund that deliberately avoids one individual stems from SpaceX's entry into the Nasdaq-100. A recent rule change that expedited the listing of mega-cap companies led to the newly public rocket firm being included in major indexes, which consequently affected the funds tracking those indexes.

      This situation forces passive investors to include SpaceX in their portfolios, regardless of their preferences. Analysts have noted that hundreds of billions in assets tied to index tracking are set to purchase SpaceX stock automatically, which critics argue results in a wealth transfer to current shareholders.

      Some investors might not desire this exposure due to concerns over SpaceX’s governance—where Musk maintains significant voting authority—or its valuation; a Danish pension fund has already placed it on its blacklist.

      However, the act of excluding a company comes with its own costs. On its first day in the Nasdaq-100, SpaceX saw a near 7% drop, which would have benefited Ex-Elon investors by avoiding that loss. Conversely, excluding a stock also means missing out on its potential gains, and Musk’s companies have generated substantial wealth for early investors. Therefore, betting against these firms signifies an active investment decision rather than a neutral stance.

      The funds also fall within a specialized and expanding category of values- and politics-driven investment options. The key question remains whether many investors will choose to allocate funds through a platform that excludes a single individual. For now, the proposition is straightforward and specific: if you want to invest in the index while avoiding one particular founder, there is now a distinct option available.