Market Overview

3 ETFs With Meaningful Tesla Exposure

3 ETFs With Meaningful Tesla Exposure

Tesla Inc's (NASDAQ: TSLA) stock on Monday jumped nearly 10% on volume that was more than two and a half times the daily average, topping $500 for the first time, after Oppenheimer boosted its price target to $612 from $385.

That left Tesla with a market value of $95.24 billion at the close, more than Ford (NYSE: F) and General Motors (NYSE: GM) combined.

Of course, Tesla's jaw-dropping ascent is meaningful for the exchange traded funds that hold the stock. There are 124 ETFs that do just that, but just six, and in the case of number six, we're rounding up, have double-digit weights to Elon Musk's company.

One of those funds, the ARK Next Generation Internet ETF (NYSE: ARKW), was one among last week's best-performing niche ETFs thanks in large part to its nearly 10% Tesla weight. Here are three other funds getting a Tesla bump.

ARK Autonomous Technology & Robotics ETF (ARKQ)

The ARK Autonomous Technology & Robotics ETF's (CBOE:ARKQ) Tesla weight is now about 11.7%, making the stock the largest holding in that fund and making that fund the largest Tesla owner, on percentage basis, of the stock.

It's just one day, but Monday proved Tesla means something to ARKQ investors as the ETF hit another all-time high, rising almost 2.1% on more than double the average daily volume.

Just a few days into 2020 and ARKQ is up 6.35%, an advantage of more than 240 basis points over the Nasdaq-100 Index.

ARK Innovation ETF (ARKK)

If you sense an ARK theme developing here, that's accurate as the investment manager and ETF issuer has long been among the most noted Tesla supporters. Put it this way: ARK offers just six ETFs, but the ARK Innovation ETF (NYSE: ARKK) and the aforementioned ARKQ and ARKW are three of the top ETF owners of Tesla shares.

With an 11.55% allocation to Tesla, ARKK is the second-largest ETF holder of the name behind ARKQ. As is the case with all the ARK ETFs mentioned here, ARKQ is actively managed.

On heavy volume, the fund jumped 2.06% yesterday on its way to another record high.

VanEck Vectors Low Carbon Energy ETF (SMOG)

Among passively managed ETFs, only one has a larger Tesla weight than the VanEck Vectors Low Carbon Energy ETF (NYSE: SMOG). The VanEck fund allocates 10.64% of its weight to the stock, making it the ETF's largest holding by a decent margin. SMOG follows the Ardour Global Index.

That index “is intended to track the overall performance of low carbon energy companies which are those companies primarily engaged in alternative energy which includes power derived principally from bio-fuels (such as ethanol), wind, solar, hydro and geothermal sources and also includes the various technologies that support the production, use and storage of these source,” according to VanEck.

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