Millions of investors own shares in Tesla without ever buying the stock directly. Others are set to gain exposure to SpaceX after its recent inclusion in major US market indices. Now, a pair of proposed exchange-traded funds, or ETFs, aims to give investors another option by excluding companies associated with Elon Musk while still tracking the broader market.
Subversive Markets Lab LLC has filed with the US Securities and Exchange Commission (SEC) to launch two actively managed funds: the Subversive Nasdaq-100 Ex-Elon Enterprises ETF (QQNE) and the Subversive S&P 500 Ex-Elon Enterprises ETF (SPNE). According to the SEC filing, the funds are designed to provide exposure to the Nasdaq-100 and S&P 500 while excluding companies founded, controlled or led by Elon Musk.
New Funds Target Musk-Linked Companies
According to the prospectus filed with the SEC, the initial exclusion list includes Tesla Inc. and Space Exploration Technologies Corp. (SpaceX). The filing also states that the funds may exclude additional companies that become closely associated with Musk in the future. Instead of holding shares in the excluded companies, the ETFs will redistribute their weighting among the remaining companies within each benchmark.
The prospectus states that the funds seek ‘to provide capital appreciation through exposure to a broad universe of large-capitalisation US equity securities, while excluding the equity securities of companies that are founded, controlled or led by Elon Musk, or with which Mr Musk is otherwise primarily associated.’ Musk’s privately held companies, including Neuralink and The Boring Company, are not currently included because they are not publicly traded.
SpaceX’s Index Inclusion Changes the Landscape
The filing comes shortly after SpaceX joined the Nasdaq-100 following its public listing. Its inclusion means millions of investors who own index funds tracking the benchmark now hold SpaceX indirectly, even if they have never chosen to invest in the company themselves. Tesla has already been one of the largest holdings in many US equity funds for several years. With SpaceX also entering major indices, investors tracking those benchmarks now have greater exposure to Musk-linked businesses.
The proposed ETFs are intended to offer an alternative for investors who want broad market exposure without owning shares in companies associated with Musk.
Why the Funds Were Created
According to the SEC filing, the ETFs are intended for investors who wish to avoid companies associated with Musk because of concerns that may include corporate governance, political risks, and share price volatility.
The filing does not express a view on Musk or his businesses. Instead, it outlines an investment strategy that excludes companies associated with him while continuing to follow the broader performance of the US equity market.
TechCrunch, which first reported on the filings after Bloomberg highlighted the registration documents, noted that the products arrive amid increasing public debate surrounding Musk’s political activities, comments on X, and the growing influence of his companies on major market indices.
How the ETFs Will Operate
Unlike traditional index funds, the proposed Ex-Elon ETFs will be actively managed. According to the filing, the portfolios will be reviewed regularly to ensure companies that meet the exclusion criteria are removed if necessary.
The filing also states that the funds may gain market exposure through direct share ownership, investments in other ETFs or financial derivatives.
Because of their active management, the ETFs are expected to charge higher fees than conventional passive index funds that simply replicate benchmark indices.
An Unusual Addition to the ETF Market
Subversive Markets Lab has previously introduced ETFs built around political themes, including funds that mirror stock trades disclosed by Democratic and Republican members of Congress and their spouses.
The proposed Ex-Elon ETFs represent another niche investment strategy that allows investors to make portfolio decisions based on personal investment preferences while maintaining diversified exposure to large US companies.
The funds are expected to launch around 21 September 2026, subject to regulatory approval.
Whether they attract significant investor demand remains uncertain. However, the filings highlight how ETF providers continue to develop products that cater to increasingly specific investor preferences as major technology companies become an even larger part of the US stock market.