Two newly launched exchange-traded funds are drawing investor interest by excluding any company founded, controlled, or led by Elon Musk. This means major holdings like Tesla and SpaceX are off-limits for these portfolios.
The funds tap into a growing sentiment among some investors who want to avoid exposure to Musk's polarizing public persona and business practices. This reflects a broader push for values-aligned investing, where personal beliefs influence asset allocation.
Each ETF's prospectus explicitly defines its exclusion criteria around Musk's leadership. Aside from Tesla and SpaceX, the funds may also skip other ventures like Neuralink or The Boring Company, though the exact list of excluded stocks depends on the fund's methodology.
The move could appeal to ethical investors or those concerned about concentration risk tied to one individual. However, it remains to be seen if these niche products gain enough assets to be viable long-term.
Critics argue that excluding successful companies based on a single person could hurt returns, especially given Tesla's market influence. The funds' long-term performance will be the true test.