Two newly registered exchange-traded funds (ETFs) now allow investors to track major stock market indexes while completely excluding companies founded, controlled, or led by Elon Musk. The funds, named Nasdaq-100 Ex-Elon Enterprises ETF and S&P 500 Ex-Elon Enterprises ETF, are designed to block investments in Tesla and SpaceX, the two publicly traded companies most closely associated with the world's richest person.

The move reflects a significant shift in how some investors view Musk and his business empire. Created by Subversive Capital, a fintech firm known for tongue-in-cheek investment products, the Ex-Elon funds seek to provide what their prospectus calls "capital appreciation through exposure to a broad universe of large-capitalization U.S. 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".

Why Are Investors Looking to Avoid Musk's Companies?

The timing of these funds is no accident. Musk's involvement with the Department of Government Efficiency (DOGE), his controversial public statements on the social platform X, and a gesture at Donald Trump's inauguration that drew comparisons to a Nazi salute have all fueled negative sentiment among some investors. For many people, avoiding Musk has become a priority that standard investment vehicles simply don't accommodate.

The challenge is that Musk's companies are deeply embedded in popular investment funds. SpaceX was recently added to the Nasdaq 100 index, which means it now appears in countless mutual funds and exchange-traded funds that track that benchmark. Tesla, meanwhile, has long been a favorite holding in large-cap and growth-focused mutual funds. For investors who want broad market exposure but prefer to exclude Musk's enterprises, the options have been limited until now.

How to Invest in Musk-Free Portfolios

• Nasdaq-100 Ex-Elon Fund: Tracks the Nasdaq-100 index but removes Tesla and SpaceX from the holdings, allowing investors to maintain exposure to technology and growth stocks while excluding Musk-affiliated companies. The fund trades under the ticker symbol QQNE.
• S&P 500 Ex-Elon Fund: Mirrors the S&P 500 index but excludes Tesla and SpaceX, giving investors broad exposure to large U.S. companies across all sectors without Musk's enterprises. The fund trades under the ticker symbol SPNE.
• Future Exclusions Possible: The prospectus notes that the funds may exclude other companies that become closely associated with Musk in the future, though his other ventures like Neuralink and The Boring Company are not currently publicly traded and therefore not yet subject to exclusion.

The two funds are legally registered with the U.S. Securities and Exchange Commission (SEC) through Tidal Trust I and the brand Subversive Markets Lab LLC. While they represent a legitimate investment option, there is clearly an element of satire involved. Subversive Capital has previously created ETFs that let investors "invest like the oligarchy," with separate funds tracking stocks held by Democratic and Republican members of Congress and their spouses.

What Does This Mean for the Broader Investment Landscape?

It remains unclear whether these Ex-Elon funds will attract significant investor interest or outperform traditional index funds that include Musk's companies. However, their creation signals something important: there is genuine demand among some investors for ways to avoid Musk and his business interests. The funds also highlight a growing trend of values-based investing, where people seek to align their portfolios with their personal beliefs or preferences.

Musk himself has a well-documented history of hostility toward traders who have shorted Tesla stock, so the existence of these funds may even provide a small measure of satisfaction to those who wish to distance themselves from his influence. Whether intentional or not, the Ex-Elon ETFs represent a novel way for investors to exercise control over their financial exposure in an increasingly polarized business and political environment.