CoinDesk reports:
U.S. ETF issuer Subversive ETFs has submitted an application to regulators to launch two new index funds tracking the Nasdaq 100 and S&P 500, but excluding all companies founded, controlled, or led by Musk. This comes amid growing scrutiny from some investors over passive holdings following SpaceX’s inclusion in the Nasdaq 100.
Two funds plan to exclude Musk’s companies
According to the application documents, the two funds are coded as QQNE and SPNE. The products remain based on major market indices but exclude companies affiliated with Musk, allowing investors to maintain index exposure while avoiding related individual stocks.
The issuer stated in the prospectus that some investors believe the associated companies of Musk face additional pressures related to corporate governance, political risks, and stock price volatility, and therefore seek alternative index products.
SpaceX’s entry has sparked controversy.
The immediate context for this application is SpaceX’s recent inclusion in the Nasdaq-100. Previously, SpaceX has also been added to the FTSE Russell and MSCI indices. In recent years, multiple index providers have revised their inclusion criteria to provide faster pathways for large IPOs to enter major indices.
As SpaceX is included in an index, passive funds tracking that index must buy the stock accordingly. Supporters view this as a significant step toward the company’s entry into mainstream capital markets, while critics argue that investors are passively taking on overvalued shares before adequate price discovery has occurred.
- QQNE: A product tracking the Nasdaq 100, excluding certain components
- SPNE: A stripped-down product corresponding to the S&P 500
- The key benefit is maintaining exposure to the index while excluding Musk’s companies.
ETFs continue to become more specialized
These products are not isolated cases. In recent years, the ETF market has continued to fragment, with an increasing number of products designed around individual companies, specific executives, or particular viewpoints. Leveraged funds that amplify Tesla’s price movements, as well as products tied to SpaceX, are already available in the market.
According to data from Eric Balchunas, ETF analyst at Bloomberg Intelligence, 214 new ETFs were launched in the United States in June 2026, setting a monthly record; net inflows into the ETF market that month amounted to approximately $191 billion, with trading volume nearing $7 trillion.
The industry holds mixed views on such products. Some believe ETFs are transforming more niche investment preferences into tradable products, while others argue that these funds are more focused on marketing and packaging, with long-term demand still uncertain.
