This weekend I came across this ETF that invests in private companies with the largest holdings being Space X. The 52 week action on tis is insane and I believe it is only a few weeks old in terms of being traded. What is your opinion of this ETF their strategy if any and the trade action in such a short time. Are there other more established funds out there that do the same thing? Would you buy something like this with some fun money? Sybol DXYZ
https://destiny.xyz/tech100
DXYZ is an interesting oppurtunity due to its strategy of investing in private companies which are normally only available to accredited investors. The Funds largest position is SpaceX at 34.6% of holdings, along with smaller positions in Epic Games (4%), OpenAI (3.8%), and Chime (1.9%). Given the unique access investors are getting, the Fund charges a steep 2.5% management fee. While it appears the Fund's investment criteria are robust, the evident risk is that these are private companies, so financial reporting and governance is also more relaxed compared to public companies. With 'fun money' we find something like this interesting as it is otherwise very hard to get access to these private companies but the risks are also clear and the fee is huge. This appears to be the first ETF that is directly investing in private companies. There are private equity ETFs but these offer indirect exposure to private companies. The units have soared in price on scarcity value, so we have to be cautious in general after a move from $9 to $86 in two weeks.