Subversive Capital has filed for two actively-managed "Ex-Elon" ETFs with the SEC that mirror the S&P 500 and Nasdaq-100 while excluding Elon Musk's companies. Removing Tesla trims the S&P 500's weight by about 2.2%, but Tesla and SpaceX together make up roughly 8.4% of the Nasdaq-100.
Subversive Capital filed for two new actively-managed funds with the SEC that strip Elon Musk's companies out of America's largest indices. One fund, the Nasdaq-100 Ex-Elon Enterprises ETF (QQNE), holds every mega-cap tech name except Tesla and SpaceX; the other, the S&P 500 Ex-Elon Enterprises ETF (SPNE), tracks the 500 largest U.S.-based companies while excluding Tesla.
In its SEC prospectus, Subversive said it aims to buy a broad universe of large-cap U.S. equities while excluding companies founded, controlled, or led by Elon Musk, or otherwise primarily associated with him. The firm told MoneyWise it couldn't comment further because its filing remains in the waiting period.
What dropping Musk does to the indices
The exclusions land differently across the two benchmarks. According to data from Slickcharts, removing Tesla from the S&P 500 cuts its total weight by about 2.2%, a modest trim. The effect on the Nasdaq-100 runs deeper, because Tesla and SpaceX now account for roughly 8.4% of that index.
Avoiding Musk has become harder recently. The filing followed SpaceX joining the Nasdaq-100 under new "fast track" rules, which let it enter the group less than a month after its IPO. A Reuters report cited a JPMorgan estimate that the inclusion alone could attract $4.3 billion from fund managers required to add it to Nasdaq-related portfolios.
Skeptics question the anti-Musk trade
Not everyone is sold on the idea. ETF.com's former managing director Dave Nadig told MarketWatch he considers the funds "gimmicks" and is skeptical they will succeed. He pointed to the Inverse Cramer Tracker ETF, launched in February 2023 to bet against "Mad Money" host Jim Cramer, which Tuttle Capital Management scrapped after about a year because it didn't attract enough funds.
Performance is the other question. Tesla's stock climbed roughly 87% over the past five years, adding to gains in the S&P 500 and the Nasdaq. There is no guarantee Musk's companies keep performing, so investors drawn to these products need to be comfortable with the risk of missing out on potential gains.
Where the Musk-averse can look instead
For those seeking diversification without Musk exposure, the article notes it is hard to achieve fully today. Tech-lighter funds cut the amount of Tesla or SpaceX an investor picks up, and an S&P 500 or Russell 3000 index carries far less Musk weight than the Nasdaq.
Another route is an ETF tracking the Dow Jones Industrial Average, which holds neither Tesla nor SpaceX. According to Pew Research, 36% of Americans hold a very unfavorable opinion of Musk. The article frames an ex-Elon portfolio as more about feelings than optimal financial decisions, suited to those who would accept losing out on some gains for the satisfaction of sticking to their beliefs.
Source: Yahoo Finance
Trading involves risk.
Risk Disclaimer
