Which ETFs Invest in Private Equities?

Entrepreneur Private-Public Crossover ETF

XOVR

-0.52%

XOVR is built primarily on the ER30TR Index, which emphasizes companies led by entrepreneurs. The methodology blends a bottom-up “Entrepreneur Factor®” with top-down thematic research that considers innovation cycles and sector flows.

In practice, this translates to a large-cap growth tilt, with heavy allocations to technology (about 34%) and communications (around 15%). But what makes XOVR really stand out is its 7% allocation to SpaceX, its second-largest holding.

Because SpaceX shares aren’t publicly listed, the fund gains exposure through a special purpose vehicle (SPV), specifically Astra Holdings SPV, LP. SPVs are structures that allow pooled investors to indirectly hold private company stakes without requiring direct ownership.

XOVR charges an expense ratio of 0.75%, which is fairly typical for specialized strategies and not far off what many active funds cost despite being index-based. With $356 million in assets under management, it has carved out a meaningful niche among ETFs that bridge public and private equity.

KraneShares Artificial Intelligence & Technology ETF

AGIX

-3.07%

KraneShares launched AGIX in July 2024, and it has since grown to $74 million in assets. That’s an important milestone as crossing $50 million generally reduces the risk of closure for newer ETFs.

At first glance, AGIX looks like a standard thematic ETF. At least 80% of its assets track the Solactive Etna Artificial General Intelligence Index, which divides the AI ecosystem into three buckets: hardware, infrastructure, and applications. Companies are chosen based on an “AI Exposure Score,” which gauges how central they are to AI development and adoption.

In practice, that means holdings range from foundational model developers to firms supplying the chips, cloud capacity, and data services that make AI training and deployment possible.

One notable feature is its fifth-largest position: a 3.9% allocation to Anthropic, the AI startup best known as a rival to OpenAI. Anthropic has attracted high-profile backing from firms like Amazon and Google, making its inclusion unusual and noteworthy for a listed ETF.

The main drawback is cost. AGIX charges a 0.99% expense ratio, which is steep compared to other thematic products. I think something closer to 0.75%, in line with XOVR, could make the fund more competitive and draw stronger flows.

How liquid are these ETFs?

Liquidity is one of the main concerns with newer or more specialized ETFs. Unlike mutual funds, ETFs rely on a creation and redemption process handled by authorized participants (APs).

When demand rises, APs create new shares by delivering the underlying basket of securities, and when investors sell, APs redeem shares for that basket. In theory, this process keeps ETF prices close to their net asset value (NAV). But in stressed markets, if the underlying holdings are hard to trade or if APs step back, disconnects can emerge.

On one front, bid-ask spreads provide a good snapshot of trading costs. According to the ETF Central data, AGIX has had a 30-day median spread of 0.17% ($0.06), while XOVR’s spread was 0.09% ($0.02).

The takeaway is that spreads aren’t razor-thin like the biggest domestic equity index ETFs, but they’re also not unreasonable for funds of this size and focus. Liquidity is adequate for most investors trading in moderate sizes.

Another key metric is the premium or discount to NAV. Investors don’t transact at NAV, only at market prices, so the gap shows how well the creation/redemption mechanism is working.

Looking at the chart, XOVR has been steady, with discounts and premiums contained near ±0.5% and an average of 0.14%. AGIX has shown more noise, with frequent swings up to ±1% and the current reading around 0.39%. During the April 2025 “tariff tantrum,” AGIX even touched deeper discounts, reflecting stress in its underlying holdings.

Both ETFs have so far maintained acceptable liquidity for niche products. XOVR looks tighter and more consistent, likely due to a larger asset base and steadier flows. AGIX is more volatile in its pricing, which is worth monitoring if you plan to trade in size, but nothing here suggests a structural liquidity problem.

Please note that this article reflects the author’s personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.