This week the big market event is the SpaceX (SPCX) IPO, which will begin trading on Friday. A way to get positioned to take advantage of this mega IPO is to own the ERShares Private-Public Crossover ETF (XOVR), suggests Jim Woods, editor of Forecasts & Strategies.
XOVR is the first US-listed ETF blending public innovators with a measured sleeve of select late-stage private companies. The fund offers a sizable position in SpaceX, along with 32 other current holdings.
On May 21, XOVR announced that it had added some $35 million to its SpaceX position. That move lifted its total to approximately $281 million, or about 23% of the fund’s assets. That move has resulted in a big surge in the price of XOVR, as can be seen in the chart here, so the market has rewarded its forward thinking.
The best part about XOVR is there are no restrictions here for individual investors. You are free to buy it right now, with plenty of time to benefit from what in all likelihood will be a big surge in SpaceX shares post-IPO.
Because of the nature of pre-IPO companies, XOVR should represent a small sliver of your overall investable assets. But if your personal risk-tolerance profile leans more toward the risk side, then I think your bias will be rewarded in the months and years to come.
Recommended Action: Buy XOVR
