Key Takeaways
- Subversive ETFs submitted SEC filings for QQNE and SPNE, two new “Ex-Elon” exchange-traded funds
- Both funds will screen out businesses founded, managed, or overseen by Elon Musk
- Currently, Tesla and SpaceX are the sole companies designated for exclusion
- SPNE mirrors the S&P 500 without Tesla; QQNE replicates the Nasdaq-100 without Tesla and SpaceX
- Industry analysts have dismissed the offerings as “gimmicks” with questionable appeal
A New York-based investment firm, Subversive ETFs, submitted regulatory documents to the Securities and Exchange Commission earlier this week for two new actively managed exchange-traded funds that will systematically eliminate holdings associated with Elon Musk.
The proposed offerings are named the Nasdaq-100 Ex-Elon Enterprises ETF and the S&P 500 Ex-Elon Enterprises ETF. Their trading symbols will be QQNE and SPNE, respectively.
Presently, Tesla and SpaceX represent the only two entities designated for removal. Portfolio managers retain the authority to incorporate additional Musk-affiliated enterprises should they become publicly traded, such as Neuralink or The Boring Company.
Space Exploration Technologies Corp., SPCX
Both investment vehicles will filter out corporations that fund managers identify as having been “founded, controlled or led by” Musk, or those with which he maintains a “primary association.”
The portfolios will maintain a minimum of 80% allocation within their corresponding benchmark exposures. Market capitalization will determine how the weight from eliminated holdings gets redistributed among remaining securities.
SpaceX entered the Nasdaq-100 earlier this week following revised Nasdaq guidelines that permitted its inclusion without displacing an existing constituent. Tesla has maintained S&P 500 membership since 2013.
Given the S&P 500’s qualification criteria, SpaceX won’t be eligible for that benchmark for a minimum of twelve months. Consequently, SPNE will effectively replicate the entire S&P 500 with the exception of a single holding: Tesla.
Motivations Behind Musk-Free Investing
Multiple factors drive investor interest in excluding Musk-related enterprises. Some take issue with his political engagement, particularly his involvement with the now-defunct Department of Government Efficiency. Others question whether SpaceX justifies its approximate $2 trillion market capitalization.
Emily Green, who leads wealth management operations at Ellevest, explained that numerous individuals “just don’t want to be aligned with” Tesla and Musk. She additionally highlighted apprehensions regarding Musk’s “basically unchecked power” within SpaceX.
Tesla’s share price experienced a temporary surge following Donald Trump’s victory in the 2024 presidential race, yet vehicle sales declined across both European and American markets throughout much of 2025.
Industry Skepticism and Investment Alternatives
Universal enthusiasm for these products remains absent. Dave Nadig, who serves as president and research director at ETF.com, characterized the funds as a “gimmick” and expressed being “extraordinarily skeptical” about their prospects.
He drew parallels to the Inverse Jim Cramer ETF, which closed operations in under twelve months due to insufficient investor demand.
Nadig further referenced Subversive’s current congressional trading portfolios — NANC and GOP — as illustrations of comparable specialty offerings.
Jia Hao, a finance professor at Babson College, observed that eliminating these holdings “may create tracking error and could cause investors to miss upside if those companies outperform.”
Financial analysts surveyed by FactSet maintain an average valuation target for SpaceX positioned 58% higher than present trading levels. Tesla currently trades approximately aligned with its consensus target, although the most optimistic forecaster projects nearly 50% appreciation potential.
Subversive intends to introduce both investment products on September 21. Specifics including expense ratios remain provisional and subject to modification.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
