This Impressive ETF Has a Huge Stake in SpaceX

Perhaps 2026 is shaping up to be one of the biggest IPO years in a while, with Elon Musk’s SpaceX reportedly poised to merge with AI firm xAI. Undoubtedly, it’s hard to tell when a potential IPO could be, but one thing is almost certain: that demand for a front-row seat to the SpaceX-xAI IPO is going to be out of this world. Whether you’re in it for Elon’s rocket company or you’re a bigger fan of Grok and where Elon Musk’s AI ambitions go from here, there’s going to be a ton of hype once IPO day finally does happen.

Of course, every day, retail investors who are looking to get in ahead of the pack have some options to get skin in the game on a pre-IPO basis by means of an ETF. But, of course, one will only get a partial stake in the likes of SpaceX or xAI. Still, given the potential for the SpaceX-xAI to excite and hit the ground running once it goes live on the public markets, an ETF may very well be the better way to play what could be a hot next year or two of new issues.

The Baron ETFs offer investors a way to gain SpaceX exposure before its IPO launch

If you’re not just looking for exposure to Elon Musk’s private firms, perhaps an ETF such as the Baron First Principles ETF (NYSEARCA:RONB) is the VIP ticket to the show before the rest of the crowd can get a foot in the door.

As usual, though, investors might need to pay a bit extra for their early price of admission. But given how high prices could rise on a post-IPO basis, I’d argue there’s a strong case for going with the likes of a SpaceX-heavy ETF with a private stake, especially for those keen on splurging to increase their exposure to Elon Musk’s impressive companies.

Either way, the SpaceX-xAI combined entity feels like it’s going to be a far more exciting play than Tesla (NASDAQ:TSLA | TSLA Price Prediction) for the Musk fans, especially those who want rockets and agentic innovation instead of robotaxis and robots.

I’m a big fan of the Baron First Principles ETF, which invests in public and private growth companies that fit Baron Capital’s goal of uncovering “true value.” Indeed, growth and value may seem like opposite sides of the spectrum. However, I do think that they’re not at all mutually exclusive, especially when you consider that investors can and often do undervalue growth. 

SpaceX, xAI, and more, all in one package

The main attraction to the ETF has to be the SpaceX and xAI exposure, which come in at around 14% and 3.5%, respectively, at the time of this writing. The 13.4% weighting in Tesla shares is sure to be appreciated by true believers in the great Elon Musk.

In any case, I find the ETF to be a great way to get a piece of Elon Musk’s private companies before they have a chance to go public. Apart from SpaceX, xAI, and Tesla, you’re also gaining exposure to a number of firms (tech and non-tech) that have impressive growth narratives of their own. With a management fee of 1%, the ETF also isn’t that wildly expensive, especially given the SpaceX and xAI private exposure brought to the table.

For those seeking even more exposure to SpaceX (think 29%) and are willing to pay up for it (think a 2% expense ratio), going down the Baron Partners Fund (BPTRX) mutual fund route could make a lot of sense. Either way, I think the higher price of admission is worth paying compared to trying to get a seat at SpaceX on IPO day. Combined with Ron Baron’s star power, and perhaps 2% isn’t as high a price to pay as it seems, especially considering the catalyst of an IPO that might loom.