For decades, pre-IPO investing has been an exclusive club.
Venture capitalists, institutional investors, and well-connected insiders got first dibs on high-growth companies before they went public.
Everyone else had to wait and watch from the sidelines. That's changing now.
ERShares XOVR ETF $XOVR has become the first ETF to provide investors exposure at the IPO stage.
$XOVR ( ▲ 1.53% ) is up 37.2% as of September 2025, soundly beating the S&P 500 (+20.1%), Russell 1000 Growth (+28.9%), and Nasdaq 100 (+26.9%).
It's time retail investors finally get a seat at the IPO table.
How It Actually Works
$XOVR ( ▲ 1.53% ) combines two strategies into one fund.
About 85% sits in the ER30TR Index, which focuses on leading public innovators you probably recognize. The remaining 15% goes directly into private companies—the ones still in their growth phase before hitting the public markets.
This isn't theoretical anymore. $XOVR ( ▲ 1.53% ) holds stakes in SpaceX, Anduril, and Klarna.
XOVR ETF holds stakes in innovative private companies. Which of these are you most excited about?
In September 2025, Klarna became a perfect case study in why this matters. The company went public, and XOVR investors who bought shares before the IPO were positioned exactly where insiders have always been—at the moment the market recognizes a company's full potential.
For too long, this dynamic stage of growth has been reserved for institutions and insiders only.. With Klarna, XOVR demonstrated that the gap can be narrowed—offering everyday investors exposure at the same point insiders participate.
Why This Matters
The regulatory landscape shifted in 2025.
The SEC eliminated longstanding restrictions that prevented retail investors from accessing private equity through ETFs and registered funds. That wasn't just a technical tweak. It was a recognition that excluding ordinary people from early-stage opportunities doesn't make economic sense anymore.
Markets are becoming more democratic. The information gap between institutions and retail investors has narrowed. Technology has made it possible to offer real pre-IPO access through a simple ETF structure. And investor demand has been clear: give us the chance to participate in growth, not just capture it after the fact.
The Numbers That Matter
Let's be specific about what happened in year one:
XOVR ETF delivered 37.2% returns with dividends included. That's not a lucky streak. That's meaningful outperformance driven by exposure to companies experiencing genuine growth.
SpaceX's valuation has continued climbing.
Anduril is reshaping defense technology.
These aren't hype plays—they're companies reshaping industries.
The S&P 500 is up 20.1% for the same period. That's solid. But it's also trading on an already-recognized value base.
$XOVR investors got to participate in the earlier phase, where the upside typically runs larger.
What This Changes
$XOVR isn't just another ETF with a clever hook.
It's a structural shift in how market access works. For financial professionals and institutional investors, this opens different portfolio construction possibilities.
Retail clients now have a legitimate vehicle to capture pre-IPO returns without needing million-dollar minimums or inside relationships.
"XOVR is not just another ETF—it's a breakthrough," says Joel Shulman, Founder and CIO of ERShares. "We anchor in the ER30TR Index to capture leading-edge public innovators, while our private equity allocation is designed to extend access to opportunities that retail investors have historically been shut out of."
The practical impact matters here. Advisors can now recommend single-fund exposure to both public innovation leaders and private growth-stage companies.
Investors get real diversification across growth stages. And the regulatory environment is now supporting this approach rather than blocking it.
Where This Goes
The first year proved the model works. XOVR ETF delivered real returns from real companies while maintaining the liquidity and regulatory structure that retail investors need.
The Klarna IPO wasn't just a win for early shareholders, it validated the entire thesis.
What happens next depends partly on market conditions and partly on how many more breakthrough companies emerge before going public. But the infrastructure is in place. The regulatory approval is locked in. And investors now have actual access instead of theoretical access.
For too long, the best opportunities arrived after the market had already priced them in.
$XOVR changed that. And those first-year results suggest it's a change that matters.
Here's what smart investors are watching right now:
Disclaimer: This is not financial or investment advice. Do your own research and consult a qualified financial advisor before investing.
