XOVR returned 27.45%* in Q2 2026 and 5.30%* in June; SpaceX contributed approximately $84 million in unrealized appreciation and about 75% of XOVR's June return, while the Fund reported approximately $387 million in SpaceX exposure and turned away an estimated $1 billion of potential inflows just prior to the SpaceX IPO in an effort to reduce dilution risk for existing shareholders.

Key Highlights

• XOVR held approximately $387 million of SpaceX exposure at quarter end, representing approximately 18% of the Fund's approximately $2.2 billion in assets under management.
• SpaceX contributed more than $135 million in unrealized appreciation during Q2 2026, helping drive XOVR's 27.45%* return for Q2.
• In June 2026, SpaceX contributed approximately $84 million in unrealized appreciation and accounted for approximately 75% of XOVR's total monthly return; XOVR returned 5.30%* for the month of June 2026.
• Assets under management increased from approximately $400 million to approximately $2.2 billion while XOVR maintained approximately 14% SpaceX exposure immediately prior to the IPO.
• XOVR's Shareholder Protection Plan was the mechanism that helped the Fund enter the IPO with approximately 14% SpaceX exposure by limiting new inflows that could have diluted existing shareholders.
• XOVR was the first ETF** to provide private equity*** exposure within an ETF structure.
• Management believes that the Fund turned away more than $1 billion of potential inflows before the SpaceX IPO in an effort to protect existing shareholders from dilution.
• ERShares seeks to identify what management believes are category-defining companies at an early stage using its proprietary Venture Capital ("VC") Lens, investing either before or after an IPO.
• XOVR is not a satellite ETF. While SpaceX is one holding within the portfolio, the fund pursues a broader public-private crossover strategy primarily based on the proprietary Entrepreneur 30 Total Return Index.
• The Fund uses the ER30TR Index as the public equity foundation and invests with a long-term, VC-style horizon.

NEW YORK, July 6, 2026 /PRNewswire/ -- ERShares today announced Q2 2026 results for the ERShares Private-Public Crossover ETF (NASDAQ: XOVR), highlighting strong performance, long-term SpaceX exposure, innovation in ETF portfolio construction, and a shareholder-first decision that management believes turned away more than $1 billion of potential inflows ahead of the SpaceX IPO.

The Fund generated a 27.45% return for the second quarter of 2026, supported by the continued appreciation of its long-term SpaceX investment and disciplined management of its private equity exposure.

As of quarter end, XOVR held approximately $387 million of SpaceX exposure, representing approximately 18% of the Fund's approximately $2.2 billion in assets under management as of July 1, 2026.

During Q2, the SpaceX position contributed more than $135 million in unrealized appreciation.

"XOVR entered the SpaceX IPO with approximately 14% exposure following the implementation of a Shareholder Protection Plan designed to help manage dilution risk during a period of significant asset growth," said Eva Ados. 

A Long-Term Investment Strategy

Management emphasized that the Fund's second quarter performance was not simply the result of the June 12, 2026 SpaceX IPO.

Throughout the quarter, XOVR's SpaceX position experienced multiple unrealized gains pursuant to the Fund's Board-approved valuation policies as new observable market information became available. In addition, management increased the Fund's exposure through several additional purchases during the quarter, reflecting its continued long-term conviction in SpaceX.

These purchases were designed to increase participation for existing shareholders while helping maintain meaningful exposure despite rapidly growing assets under management.

June Performance

June represented one of the strongest, relative months in the Fund's history.

SpaceX generated approximately $84 million in unrealized appreciation during the month and, based upon the Fund's internal performance attribution analysis, accounted for proximately 75% of XOVR's total June return.

Past performance does not guarantee future results.

The Fund generated a 5.30% return from 05/31/2026 to 06/30/2026 despite a challenging environment for large-cap growth equities, with major benchmarks including the S&P 500, Nasdaq-100 and Russell 1000 Growth Index declining by as much as -2.68%  during the month.

Management believes these results demonstrate the value of combining innovative public companies with carefully selected private company investments that may follow different valuation cycles than the broader public equity markets.

Maintaining Conviction During Extraordinary Asset Growth

One of the defining achievements of the quarter was the Fund's ability to help preserve meaningful SpaceX exposure despite unprecedented growth in assets.

During the second quarter, XOVR's assets under management increased from approximately $400 million to approximately $2.2 billion.

Ordinarily, rapid asset growth immediately before a significant liquidity event can materially dilute an existing private investment position unless additional exposure is acquired.

Through disciplined portfolio management and additional purchases of SpaceX exposure, XOVR maintained approximately 14% exposure immediately prior to the IPO, preserving meaningful participation for long-term shareholders despite one of the fastest periods of asset growth experienced by a U.S. ETF.

Management believes the Shareholder Protection Plan contributed to the Fund's ability to maintain approximately 14% SpaceX exposure immediately prior to the IPO. The plan temporarily limited certain new inflows during a period of rapid asset growth with the objective of managing potential dilution of the Fund's existing private company exposure.

Putting Shareholders Before Asset Growth

As investor interest accelerated immediately before the SpaceX IPO, many investment vehicles experienced substantial inflows.

Rather than maximizing assets under management, XOVR implemented a temporary shareholder protection measure designed to address the effects that significant asset inflows could have on the Fund's private company exposure..

During the week preceding the IPO, the Fund rejected new creation orders in an effort to preserve the economic interests of existing shareholders.

Management estimates the Fund turned away more than $1 billion of potential inflows during this period.

While accepting those assets would have increased management fee revenue, management concluded that limiting certain inflows during this period was consistent with its investment philosophy and objective of managing dilution risk associated with rapid asset growth.

Continuing to Innovate

Since introducing the First Private-Public Crossover ETF, XOVR has continued to refine its approach to accessing private market investments through an ETF.

The Fund provides meaningful private equity exposure within an ETF structure.

It has implemented a liquidity framework allowing private company exposure to exceed traditional thresholds**** while maintaining daily ETF liquidity.

It has also implemented a Shareholder Protection Plan that rejected new inflows immediately prior to a major IPO in order to protect long-term shareholders.

Management believes these innovations represent an important evolution in how investors can access what they consider premier private companies while maintaining the transparency, liquidity and operational efficiency of an exchange-traded fund.

A Differentiated Investment Strategy

Unlike traditional private investment vehicles that typically impose long lock-up periods, higher management fees and performance fees, XOVR combines public market liquidity with access to carefully selected private investments.

The traditional threshold of illiquid private company exposure into ETFs is 15%. XOVR participated in a liquidity arrangement that re-classified SpaceX away from an illiquid status and allowed the fund to exceed the traditional 15% threshold typically applicable to all private company exposure.

Despite operating, what management believes is one of the largest private company positions among U.S.-listed ETFs, XOVR continues to charge a management fee of only 0.75% and does not earn additional ongoing management fees associated with its private equity exposure.

Management believes this alignment reinforces its commitment to delivering long-term shareholder value rather than maximizing fee generation.

Looking Ahead

ERShares intends to continue expanding XOVR's private equity portfolio as attractive opportunities become available.

Management believes the combination of disciplined public equity investing, carefully selected private company investments, proprietary research, and shareholder-focused portfolio management provides investors with a differentiated strategy that is difficult to replicate through traditional investment products. There can be no assurance the strategy will achieve its objectives.

"Our objective has always been to build an ETF that gives investors access to exceptional private companies maintaining a focus on long-term shareholder outcomes and disciplined portfolio management," said Dr. Joel Shulman, Founder and Chief Investment Officer of ERShares. "The second quarter demonstrated that innovation alone is not enough. Innovation must be accompanied by disciplined execution, thoughtful risk management and an unwavering commitment to putting shareholders first. We believe the decisions we made before the SpaceX IPO reflect those principles and position XOVR to continue the evolution of private-public crossover investing."

Disclosures:

The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information may be obtained by calling +1 (617) 279 0045 or by visiting our website www.ershares.com. Read it carefully before investing. Distributed by Foreside Financial Services, LLC.

*Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For the most recent month-end performance, current holdings and other important information please call +1 (617) 279 0045 or visit our website www.ershares.com.

** Basis of "first" claim: ERShares review of U.S.-listed open‑end 1940 Act ETFs and public filings as of Aug 29, 2024; requires daily creations/redemptions and a single ETF portfolio with private‑company exposure reflected in daily NAV alongside public equities. Excludes interval funds, closed‑end funds, BDC/PE‑manager ETFs, SPACs, and products without private‑company exposure in NAV.

*** Private equity refers to investments in privately held companies or public companies taken private, typically through pooled funds managed by private equity firms.

**** The traditional threshold of illiquid private company exposure into ETFs is 15%. XOVR participated in a liquidity arrangement that re-classified SpaceX away from an illiquid status and allowed the fund to exceed the traditional 15% threshold typically applicable to all private company exposure.

Important Information:

The Fund's investment performance may be significantly affected by changes in the value of one or more large portfolio positions, which may increase the Fund's volatility and risk.

The Fund does not directly hold SpaceX shares. Exposure is obtained indirectly through SPVs that invest in private securities with exposure to SpaceX. Such investments involve risks, including limited liquidity, valuation uncertainty, lack of certain regulatory protections, additional fees and expenses, and no assurance that the SPV will achieve its investment objective

There can be no assurance that the Shareholder Protection Plan will achieve its intended objectives. Management implemented the measure based on its assessment of the potential impact of significant asset inflows on the Fund's portfolio composition and private company exposure.

Index performance does not represent the fund's performance. It is not possible to invest directly in an index. Due to the nature of the private and public holdings of XOVR, the ER30TR, S&P 500, Nasdaq-100 and Russell 1000 Growth Indices are unmanaged and directly comparable.

The S&P 500 is an index of 500 leading large-cap U.S. companies that serves as a broad benchmark for the overall U.S. stock market, the NASDAQ-100 tracks the 100 largest non-financial companies listed on the Nasdaq Stock Market with a strong emphasis on technology and growth companies, and the Russell 1000 Index measures the performance of the 1,000 largest publicly traded U.S. companies by market capitalization, representing most of the U.S. equity market.

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SOURCE ERShares