Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

2 ETFs To Plug Into Tesla Stock

By Investing.com (Tezcan Gecgil/Investing.com )ETFsNov 03, 2021 05:25AM ET
www.investing.com/analysis/2-etfs-to-plug-into-tesla-stock-200607120
2 ETFs To Plug Into Tesla Stock
By Investing.com (Tezcan Gecgil/Investing.com )   |  Nov 03, 2021 05:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Investors in electric vehicle heavyweight Tesla (NASDAQ:TSLA) saw solid returns in October. Now, November has also started on a strong note. TSLA stock is up about 55% over the past month and 70% so far this year.

TSLA Daily Chart
TSLA Daily Chart

The 52-week range for Tesla has been $392.30 - $1,209.7, while the market capitalization stands at well above $1.15 trillion. Given the recent rapid run-up in price, many investors wonder if there could be short-term profit-taking in Tesla stock.

In fact, among 37 analysts polled by Investing.com, the stock has a neutral rating. Shares have a 12-month price target of $787.92, implying a decrease of about 30% from current levels. And the 12-month price range currently stands between $236 and $1,300.

Consensus Estimates Of Analysts Polled By Investing.com
Consensus Estimates Of Analysts Polled By Investing.com

We previously covered Tesla (here, here, and here) as well as several exchange-traded funds (ETFs) that have TSLA as a main top holding. Today, we introduce two more funds. They could appeal to investors who would like some exposure to the car manufacturer but do not necessarily want the short-term volatility that comes with the shares.

1. ARK Autonomous Technology & Robotics ETF

  • Current Price: $87.42
  • 52-Week Range: $57.93 - $101.11
  • Expense Ratio: 0.75 % per year

The ARK Autonomous Technology & Robotics ETF (NYSE:ARKQ) invests in leading businesses in autonomous transportation, automation, robotics, energy storage, 3D printing, as well as space exploration. Since its inception in September 2014, net assets have reached $2.5 billion.

ARKQ Weekly Chart.
ARKQ Weekly Chart.

ARKQ, an actively-managed ETF, currently has 38 holdings. The top 10 names account for about 55% of the fund. Tesla has the highest weighting, with 12.83%.

Next in line are Trimble (NASDAQ:TRMB), which provides positioning products to governments and enterprises, software group Uipath (NYSE:PATH), which focuses on robotic process automation, Kratos Defense & Security Solutions (NASDAQ:KTOS), which is known for its military drones among other products, and Unity Software (NYSE:U), which offers a platform for creating 3D content.

ARKQ is up more than 15% YTD and 50% in the past 12 months. After hitting a record high in mid-February, the names in the fund have come under pressure. On Oct. 4, it saw a multi-month low of $75.89. But since then the ETF has gained more than 14%.

Many of the firms in ARKQ are regarded as those at the forefront of the Fourth Industrial Revolution, which is “characterized by a fusion of technologies that is blurring the lines between the physical, digital and biological spheres… [and covering] fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage and quantum computing.”

Therefore, we’re likely to hear more about these companies in the future. Interested readers could regard potential declines in the fund as an opportunity to invest in a range of stocks that includes Tesla.

2. First Trust NASDAQ Global Auto Index Fund ETF

  • Current Price: $64.78
  • 52-Week Range: $40.51 - $65.00
  • Dividend Yield: 0.72%
  • Expense Ratio: 0.70% per year

The First Trust NASDAQ Global Auto Index Fund (NASDAQ:CARZ) invests in global automobile manufacturers. They include traditional car makers as well as those that are investing heavily in electric and self-driven vehicles. The fund started trading in May 2011, and has around $74.5 million in assets, making it much smaller than ARKQ.

CARZ Weekly Chart.
CARZ Weekly Chart.

CARZ, which has 34 holdings, tracks the returns of the NASDAQ OMX Global Auto Index. Japanese car manufacturers have the largest slice, with 31.37%. They are followed by automakers from the U.S. (20.99%), Germany (20.33%), China (9.75%) and South Korea (7.45%).

As the top 10 names comprise 63% of the ETF, it is a top heavy fund. Once again, Tesla has the Number One spot, with 11.88%. Daimler (OTC:DDAIF), General Motors (NYSE:GM), Toyota Motor (NYSE:TM), Honda Motor (NYSE:HMC), and Ford Motor (NYSE:F) are the other leading names on the roster.

Over the past year, the fund is up about 60%, and returned 25.5% in 2021. It hit an all-time high in recent days. Readers looking for a pure-play ETF in the automotive sector might want to research CARZ further.

2 ETFs To Plug Into Tesla Stock
 

Related Articles

2 ETFs To Plug Into Tesla Stock

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
vet Sen Vet Sen
vet Sen Vet Sen Nov 04, 2021 1:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
🙏
Bdkeb Bdken
Bdkeb Bdken Nov 03, 2021 12:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
😥😥😥
Jon Gray
Jon Gray Nov 03, 2021 11:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
XLY has a 20% Tesla weighting currently.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email