Key Points
- Subversive Capital submitted SEC filings for QQNE and SPNE, two funds excluding Elon Musk ventures
- Both ETFs will screen out enterprises founded, managed, or primarily associated with Musk
- Currently, Tesla and SpaceX are the sole companies targeted for exclusion
- SPNE will mirror the S&P 500 without Tesla; QQNE will follow the Nasdaq-100 excluding both companies
- Industry professionals express skepticism, with one analyst labeling them a marketing ploy
Subversive Capital, an ETF provider based in New York, submitted regulatory documents to the Securities and Exchange Commission recently, proposing two actively managed exchange-traded funds that deliberately avoid holdings in Elon Musk-related enterprises.
These investment vehicles are designated as the S&P 500 Ex-Elon Enterprises ETF and the Nasdaq-100 Ex-Elon Enterprises ETF, set to list with ticker symbols SPNE and QQNE respectively.
Currently, Tesla and SpaceX comprise the complete roster of excluded entities. Portfolio administrators retain discretion to incorporate additional Musk-affiliated ventures should they become publicly traded, such as Neuralink or The Boring Company.
Space Exploration Technologies Corp., SPCX
Both investment products will filter out corporations that management identifies as having been “founded, controlled or led by” Musk, or where his association is considered primary.
The portfolio composition calls for maintaining a minimum 80% allocation within their corresponding benchmark indexes. Weightings from eliminated holdings will be redistributed among remaining constituents based on their market capitalization.
SpaceX achieved Nasdaq-100 inclusion recently following revised regulations from Nasdaq that permitted its addition without necessitating another company’s removal. Tesla has maintained S&P 500 membership since 2013.
Due to S&P 500 qualification criteria, SpaceX faces a minimum one-year waiting period before potential inclusion in that benchmark. Consequently, SPNE will effectively replicate the entire S&P 500 portfolio with a single exclusion: Tesla.
Investor Motivation Behind Musk-Free Portfolios
Multiple factors drive investor interest in avoiding Musk-associated enterprises. Certain investors take issue with his governmental involvement, including his participation in the recently dissolved Department of Government Efficiency. Additional skepticism surrounds SpaceX’s approximately $2 trillion market valuation.
Emily Green, who directs wealth management operations at Ellevest, observed that substantial numbers of investors “just don’t want to be aligned with” Tesla and Musk. She highlighted concerns regarding what she described as Musk’s “basically unchecked power” within SpaceX operations.
Tesla’s share price experienced temporary elevation following Donald Trump’s 2024 presidential victory, though vehicle sales declined across European and American markets throughout much of 2025.
Industry Skepticism and Alternative Approaches
Not all market observers anticipate success for these investment vehicles. Dave Nadig, who serves as president and research director at ETF.com, characterized these offerings as a “gimmick” and expressed being “extraordinarily skeptical” about their prospects.
He drew parallels to the Inverse Jim Cramer ETF, which ceased operations within twelve months of launch due to insufficient investor interest.
Nadig additionally referenced Subversive’s current congressional trading funds — NANC and GOP — as comparable examples of highly specialized investment products.
Jia Hao, a finance professor at Babson College, observed that eliminating these corporations “may create tracking error and could cause investors to miss upside if those companies outperform.”
FactSet’s compilation of analyst projections shows SpaceX carrying an average price target positioned 58% beyond present trading levels. Tesla currently trades near its consensus target, though the most optimistic projection suggests potential appreciation approaching 50%.
Subversive has scheduled September 21 as the target launch date for both funds. Specific details including expense ratios remain subject to modification.
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