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by The ETF Professor.
Few U.S. chief executive officers are as hot as Elon Musk these
days. Musk is the CEO of not one, but two of the highest flying
publicly traded companies in the U.S.
), the maker of solar energy systems for business and residential
customers, has seen its shares more than double in the past month.
Musk's other company, electric car maker
), is up about 74 percent in the past month. Indeed, it is a good
time to be Elon Musk and it is has been a good time for his fans
that have bought shares of SolarCity or Tesla.
Despite the popularity of Musk and his companies, accessing both
stocks via one ETF is currently difficult. One ETF
can be considered the Tesla ETF
, that being the
First Trust NASDAQ Clean Edge Green Energy Index
). QCLN allocates over 15 percent of its weight to Tesla.
SolarCity for all its bullishness is not even included among the
Market Vector Solar Energy ETF's
) 34 holdings, but the larger
Guggenheim Solar ETF
) does feature an almost 5.7 percent weight to the stock. Neither
ETF features Tesla, however.
Investors looking for exposure to both stocks via one ETF should
consider a fund that has been called
the Elon Musk ETF
. That ETF is the
PowerShares WilderHill Clean Energy Portfolio
While the weights are not staggering, SolarCity and Tesla are PBW's
two largest holdings at weights of 4.75 and 4.74 percent,
respectively. Based on Wednesday's closing prices, buying one share
each of SolarCity and Tesla would cost about $131. Admittedly, this
is should not be a deciding factor in making investment decisions,
but for $131, investors can get about 24 shares of PBW.
Indeed, PBW did not have a good Wednesday, falling by almost 4.3
percent. However, the impact of SolarCity and Tesla on this ETF is
palpable as the
has surged over 25 percent in the past month. Of course, soaring
solar stocks are part of the reason PBW has performed so well.
The ETF features a significant allocation to the solar space with
names such as
(SPWR) found among the ETF's top-10 holdings.
Until other alternative energy
rebalance to include larger weights to both SolarCity and Tesla,
PBW will reign as the Elon Musk ETF. It appears some investors are
already buying into that concept as PBW has hauled in almost $10.1
million of its $177.9 million in assets in just the past month,
according to PowerShares data
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