Tesla Motors Inc (NASDAQ:TSLA) has taken the place of Apple Inc. (NASDAQ:AAPL) in some exchange traded funds (ETFs), reports The ETF Professor on Benzinga. The automaker’s stock has become the one some investors can’t seem to get enough of, while Apple Inc. (NASDAQ:AAPL) is being shunned by many of these same investors.
Tesla Motors: A New ETF Trend?
Even today, many ETFs still have large portions of their portfolio in Apple Inc. (NASDAQ:AAPL), although when the stock was at its peak, it made up more than a fifth of some ETFs’ weights. Now we’re seeing something similar happen with Tesla Motors Inc (NASDAQ:TSLA).
Now some would say that we shouldn’t compare Apples to, well, Teslas, but there is a category of ETF that’s placing an Apple-esque weight on Tesla right now. Keep in mind though that this isn’t all ETFs or even most of them.
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The Tesla Effect On QCLN
The ETF which has the biggest weight in Tesla Motors Inc (NASDAQ:TSLA) is the First Trust NASDAQ Clean Edge Green Energy Index Fund (ETF) (NASDAQ:QCLN). The fund has about 16 percent of its weight in the automaker’s stock.
Shares of Tesla Motors Inc (NASDAQ:TSLA) have risen 57 percent over the past month, and the First Trust NASDAQ Clean Edge Green Energy Index Fund (ETF) (NASDAQ:QCLN) is up 11 percent. Tesla Motors Inc (NASDAQ:TSLA) really helped give the fund a boost between May 13 and 14 when it started the 13th with $37.3 million in assets and then by the beginning of the 14th, it had more than $48 million in assets under management—largely thanks to Tesla’s incredible rise on those days.
Unfortunately it also works the other way. Shares of Tesla Motors Inc (NASDAQ:TSLA) has fallen 11 percent over the last five days, and the First Trust NASDAQ Clean Edge Green Energy Index Fund (ETF) (NASDAQ:QCLN) dropped 6.7 percent during the same time span.
The Tesla Effect On GEX
Something similar is happening with the Market Vectors Glbl Alter. Engy ETF Trst (NYSEARCA:GEX). According to The ETF Professor, it has almost 10 percent of its weight in the stock. This has helped the ETF climb more than 9 percent within the last month, but over the last week, it has fallen 5.5 percent, right along with Tesla.
In addition, the Market Vectors Glbl Alter. Engy ETF Trst (NYSEARCA:GEX) has also added to its assets under management with Tesla Motors Inc (NASDAQ:TSLA). On May 1, the ETF has $63.5 million in assets under its management. The following day, its assets had risen to $72 million.