ETFs With Tesla Motors (TSLA) – GEX, QCLN
Tesla Motors (TSLA) is a growth investor’s dream.
The fully electric Tesla Model S has captured 12% of the luxury car sales in California. And the most impressive part is how quickly they did it… production of Model S began in June of 2012.
Anytime a new product can come into a competitive market like luxury car sales and grab a 12% market share in such a short time, it’s going to turn some heads.
Car buyers aren’t the only ones Tesla has reaching for their wallets…
Investors began to pour money into TSLA in April. That’s when the company announced they joined two banks to offer purchase financing and gave buyers an option to sell the car back to TSLA after three years at a guaranteed value.
But that was just the beginning…
The stock went gangbusters when they reported their first quarterly profit and beat analysts’ estimates of 4 cents per share by earning 12 cents per share on May 8th.
And it has continued to soar after they reported a 20 cent per share 2nd quarter profit on August 7th that crushed expectations for a 17 cent per share loss!
What’s more, Tesla is moving quickly to expand the number of cars they offer.
They have a Model X, a crossover with three rows and room for seven passengers, set to go into production in 2014. And the Model E, a more affordable sedan than the Model S, is expected in 2015.
But that’s not all. Tesla is also expanding sales of the Model S into the world’s largest automobile market… China. They already have more than 300 reservations in Hong Kong. And they expect it to be a big hit with wealthy consumers when they open a showroom in Beijing this year.
It’s safe to say, the electric vehicle manufacturer’s business model has investors giddy with thoughts of the company’s potential.
So far this year, TSLA is up an eye-popping 393% to recent high of $173 per share. The company now has a market cap of $20 billion.
Investors who want to use an ETF to invest in TSLA have a few options. Let’s take a look at two ETFs with large holdings of TSLA.
The ETF with the largest percentage of holdings devoted to TSLA is Market Vectors Global Alternative Energy ETF (GEX). It has 16.17% of net assets in TSLA.
The rest of GEX’s 31 holdings are made up of companies that focus on solar, bio energy, wind power, hydro power, and geothermal energy.
GEX is up 45% year-to-date to $48.00. It has an expense ratio of 0.62% and it has an annual dividend yield of 0.42%.
Another ETF with a large portion of holdings dedicated to TSLA is First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN). As of today, TSLA makes up 13.37% of QCLN’s holdings.
Similar to GEX, the rest of QCLN’s holdings are companies involved in alternative and green energy.
QCLN is up 60% year-to-date to around $15.00. It has an expense ratio of 0.60% and it has an annual dividend yield of 1.08%.
Here’s the bottom line…
TSLA has become the hot growth stock to own on Wall Street. ETF investors can get in on the action with QCLN and GEX.
Good Investing,
Corey Williams
Category: ETFs, What's Going On?
