DW was chatting about the possible SpaceX IPO, having just seen a youTube video about it. I commented that IPOs are generally overpriced and have often not a great investment historically, but that although SpaceX isn't yet listed, you can get some exposure via some listed investment companies that gained exposure to the private SpaceX shares issued during various rounds of capital raising, and traded off market. One of these is the ER Shares Private-Public Crossover ETF (XOVR) that currently has around 40% of its NAV tied up in exposure to SpaceX private share capital. How it got that level of weighting to SpaceX is itself quite interesting (it initially had around 5%-10% of capital invested in that, but over time it had to liquidate listed investments to cover capital outflows, so the proportion of its capital tied up in the illiquid SpaceX holding increased over time. From my POV that was actually a good thing, as I am interested in getting some exposure to SpaceX, not other listed stocks.
Anyhow, the price for XOVR has fluctuated between $14.79-$21.78 over the past 52 weeks, so the latest closing price of $17.03 seems reasonable. I placed a limit order at $17.00 for 100 XOVR units with my IBKR account, Hopefully it will get filled when the market opens. The current NAV for XOVR is apparently around $16.98, so the current market price seems reasonable too. Investing $1,700 in XOVR would make a significant impact on my NW whether it crashes to zero or becomes a '10-bagger', but it is fun to have a little bit of indirect ownership in SpaceX.
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2 comments:
PE1 also has exposure to Space X - it's biggest position.
Yes, but at 7.7% of its overall holdings, that exposure via PE1 is a lot more diluted than XOVR's 42%. PE1 might be a better, more diversified bet, but if you are buying mostly to get SpaceX exposure it seems XOVR is more suitable. Then again, I haven't even bothered looking at what else XOVR (or PE1) are holding, so not comparing them beyond simply the amount of indirect access to SpaceX you get from each.
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