New ETFs Offer Exposure to Private Company Stocks
Investors can now gain indirect exposure to unlisted firms through funds linked to perpetual futures.
Updated on Oct. 28, 2026 in Investing
Live Poll
Would you trust an investment fund that uses high-risk derivative bets to access private companies?
New exchange-traded funds launched in October 2026 are using perpetual futures to offer investors exposure to private companies. These financial products allow households to track the valuations of pre-IPO firms without the need to hold private stock directly.
Why it matters
By utilizing total return swaps linked to perpetual futures, issuers have created a mechanism to gain exposure to sought-after private firms that were previously difficult for individual investors to access. This development effectively bridges the gap between private equity markets and retail-friendly ETF structures.
Defiance ETFs recently reported an 80% portfolio allocation dedicated to pre-IPO leaders, representing a significant shift toward private equity exposure. The underlying reliability of these positions remains tied to reference prices derived from market maker activity.
The players
Leverage Shares
An investment firm that develops exchange-traded products, including new funds offering exposure to private company valuations.
Corgi Funds
A financial entity that recently introduced ETFs using total return swaps to track unlisted stocks.
21Shares
A provider of crypto and synthetic exchange-traded products that has listed new products in Vienna and Stuttgart.
The details
The funds hold total return swaps linked to perpetual futures, which are instruments that lack an expiry date and reset at fixed intervals. Exchanges calculate reference prices for these private companies by aggregating bids and offers from market makers along with external value indications. Once an entity completes an initial public offering, the perpetual futures are designed to track the company's public share price.
Timeline
Perpetual futures were cleared to trade in the United States in May 2026.
New ETFs from Leverage Shares and Corgi Funds launched in October 2026.
Money Landscape
The introduction of these funds follows the May 2026 U.S. regulatory clearance of perpetual futures, which established the foundation for these complex derivative products. This shift expands the range of assets available to retail portfolios beyond traditional public equities.
Investors should consider the unique risks of these derivative-linked products, as their value relies on market maker valuations rather than traditional stock exchange pricing. Before adding these to a portfolio, consult a financial professional to evaluate how synthetic exposure fits into your long-term risk tolerance.
The takeaway
These new ETFs offer a way to gain exposure to companies before they go public, though they rely on complex swaps rather than direct ownership. Monitor your investment statements to ensure your exposure matches your comfort level with derivative-based strategies.
Further reading
For more on the mechanics of building a diversified portfolio, see our guide to Investing.
Source note: This article includes information reported by Financial Times News.
Live Poll
Would you trust an investment fund that uses high-risk derivative bets to access private companies?
