XOVR ETF underperforms despite gains in NVIDIA and Alphabet as hyperscaler AI spending becomes key return driver.
The ERShares Private-Public Crossover ETF (XOVR) trades at $19.08, down 5% year-to-date, lagging its public holdings like NVIDIA and Alphabet. The fund blends late-stage private growth with public AI infrastructure stocks, but widening performance gaps between these segments pressure returns.
XOVR’s public sleeve includes NVIDIA (up 18%), Alphabet (up 24%), Meta Platforms (down 9%), and AppLovin (down 29%). The fund’s underperformance highlights the impact of its private holdings and weighting strategy beyond mega-cap exposure.
Hyperscaler AI capital expenditures will be the critical driver for XOVR over the next 12 months. Alphabet’s guidance of $175 to $185 billion in capex underscores the scale of spending, which far exceeds prior cycles and could reshape the fund’s trajectory.