It may seem like ages ago that Apple (NASDAQ:
) was racing to the stratosphere and investors were talking about
the iPad maker becoming a $1,000 stock.
There was even chatter about a $1 trillion market
capitalization, an often talked about but never seen Wall Street
ETF investors remember those days because when Apple traded
above $500, $600 and to $700,
became a capital-efficient way for many investors to access the
stock. It was a practical move because plenty of large, liquid
ETFs featured (and still do)
large allocations to Apple
. At Apple's peak, the stock accounted for over a fifth of the
weight in some ETFs.
That was one of those scenarios that
worked until it did not
. It is also one that could be playing with another story stock,
electric car maker Tesla (NASDAQ:
) and the small number of ETFs that currently have large weight's
to Elon Musk's company.
"People either love us or hate us but they are rarely
said Musk of his company
Knowing that, it is not unreasonable to say traders and
investors that actively follow Tesla are impassioned one way or
the other, bull or bear. With that in mind, the intent here is
not to edify or vilify Tesla. Rather, it is to highlight the
Apple-esque effect the stock is having and could continue to have
on a couple of still small ETFs.
has been previously noted
, the First Trust NASDAQ Clean Edge Green Energy Index Fund
) is the ETF with the largest weight to Tesla, currently almost
In the past month, shares of Tesla are up 57 percent while
QCLN has risen 11 percent. Tesla is proving to be a boon for QCLN
in another way. On May 13, the ETF had $37.3 million in assets
under management. At the start of trading Wednesday, the number
was north of $48 million. Here is the rub: TSLA is down 11
percent in the past five days, taking QCLN for a 6.7 percent
spill in the process.
The Market Vectors Global Alternative Energy ETF (NYSE:
) is another "Tesla ETF" with an almost 10 percent weight to the
stock. That has been helpful on the way up as GEX has jumped over
nine percent over the past month. The other side of the coin is
that GEX is off 5.5 percent in the past week.
As is the case with QCLN, GEX has gotten a bit heftier in the
assets waistline because of Tesla. On May 1, GEX had $63.5
million in AUM. On Wednesday, that number was up to $72
Traders and investors are entitled to their own opinions about
Tesla, but the undeniable fact is the stock, for better or worse,
has taken on an Apple-esque role in GEX and QCLN.
For more on ETFs, click
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