Buying SpaceX Stock Has Never Been Easier, But Beware The Risks

SpaceX, Elon Musk’s visionary aerospace company, has become synonymous with innovation. From reusable rockets to the Starlink satellite internet network, SpaceX is transforming industries and cementing its place as a leader in space exploration. Unsurprisingly, it has also become one of the most sought-after investment opportunities globally. However, as a privately held company, SpaceX’s stock is not directly available to the public, creating challenges for investors eager to participate in its growth.

Despite this limitation, several indirect paths allow individuals and institutions to gain exposure to SpaceX. These options come with varying levels of accessibility, costs, and risks. This article evaluates the most prominent strategies, emphasizing management fees, liquidity, minimum investment requirements, and the often-overlooked market-to-net asset value (NAV) ratio. Understanding these factors is essential, as some funds price SpaceX shares at up to 10 times their latest estimated value. Here’s a comprehensive breakdown of your options.

1. EntrepreneurShares ETF (Ticker: XOVR)

The XOVR ETF stands out as one of the simplest, most cost-effective, and accessible ways to gain indirect exposure to SpaceX. Unlike funds limited to accredited investors, XOVR is open to all, making it a compelling option for retail investors.

• SpaceX Weight in Fund (% of market cap): 10.41% (highest %).
• Expense Ratio: 0.75% (lowest).
• Liquidity: Daily.
• Minimum Investment: None.
• Market Cap to NAV: 1x (priced at actual value).
• Key Features:
• Over 85% of the fund is invested in the ER30TR Index, which has delivered impressive performance (+142% since December 2022).
• Broad availability across major platforms, including Schwab, Fidelity, Robinhood, and IBKR.
• Drawbacks:
• Limited availability for international investors on non-U.S. platforms. The fund also has exposure to growth stocks that may not be suitable for investors seeking a high dividend yield.
• Conclusion: With its low fees, high liquidity, and the highest SpaceX allocation relative to market cap, XOVR is the best choice for retail investors seeking exposure to SpaceX without excessive costs or complications.

2. ARKK Ventures Interval Fund (Ticker: ARKVX)

ARK Invest, through its ARKK Venture Capital Fund, offers another indirect route to SpaceX ownership. Known for its focus on disruptive technologies, ARKK Ventures invests in both public and private companies, including SpaceX.

• SpaceX Weight in Fund (% of market cap): 9.74% (3rd highest%)
• Expense Ratio: 5.76% (very high).
• Liquidity: Quarterly, with redemptions limited to 5% of fund assets. Excess redemptions are pro-rated.
• Minimum Investment: $500.
• Market Cap to NAV: 1x (priced at actual value).
• Key Features:
• Targets innovative sectors and companies.
• Purchase options available through platforms like Sofi and Titan.
• Drawbacks:
• Liquidity is limited, with redemptions only allowed once per quarter.

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