For investors who dislike Musk…ETFs excluding Tesla and SpaceX are coming out

For investors who dislike Musk…ETFs excluding Tesla and SpaceX are coming out

Only Elon Musk-related companies excluded from Nasdaq 100 and S&P 500

New exchange-traded funds (ETFs) that exclude only Elon Musk's companies, such as SpaceX and Tesla, are expected to be launched for investors who dislike the polarizing American businessman Elon Musk.

Bloomberg reported on the 9th (local time) that Subversive, a new financial company, has submitted documents for the launch of new ETFs that can track the Nasdaq 100 index and the Standard & Poor's (S&P) 500 index, excluding companies founded and controlled by Elon Musk.

Subversive proposed 'QQNE' and 'SPNE' as the stock tickers for these ETFs, respectively.

These products appeared after SpaceX was included in the Nasdaq 100 index.

Less than a month after its listing, SpaceX was officially included in the Financial Times Stock Exchange (FTSE) Russell, Morgan Stanley Capital International (MSCI), and Nasdaq 100 indexes at high speed.

It is unusual for a loss-making company to be included in such market-representative indexes immediately after listing, and this was possible because major index providers revised their fast-track regulations before SpaceX's listing.

The financial market expected this inclusion to naturally lead to trillions of won in assets under management tracking the Nasdaq 100 index flowing into SpaceX.

In this context, ETFs have emerged that can track the Nasdaq 100 index as before, but without investing in Elon Musk-related companies like SpaceX.

Meanwhile, ETFs are products that combine the advantages of fund investing, where investors do not have to bother choosing individual stocks, and stock investing, where they can trade immediately at any desired price. However, there are also criticisms that too many personalized ETFs being launched in the financial world recently.

According to Bloomberg Intelligence, a total of 214 ETFs were launched last month, setting an all-time record.

Nate Geraci, president of The ETF Store, pointed out, "Musk is a polarizing figure, so it's understandable that ETF issuers are trying to capitalize on that," but added, "they are segmenting the market too much."