Shares of electric maker Tesla (NASDAQ:
) are soaring by nearly 9.7 percent Tuesday on volume that is
more than double the daily average, a move that helped the
darling stock touch a new all-time high at $105.40 earlier
Tesla's bullish ways are helping the PowerShares WilderHill
Clean Energy Portfolio (NYSE:
) to a gain of almost 1.1 percent. PBW, one of many alternative
left for dead last year, has been reborn as the
Elon Musk ETF
due to the fund's combined 10.7 percent weight to Tesla and
), Musk's two companies.
PBW is not the only ETF from the PowerShares lineup that is
benefiting from investors' adulation of Musk. Though to a smaller
degree, the PowerShares Global Clean Energy Portfolio (NYSE:
) is another option to consider for grabbing simultaneous
exposure to Tesla and SolarCity.
PBD, which tracks the WilderHill New Energy Global Innovation
Index, features Musk's two companies as its two largest holdings
as does PBW. In the case of PBD, Tesla and SolarCity combine for
nearly eight percent of the ETF's weight.
That is not a huge allocation to those high-flying stocks, but
is enough to have pushed PBD to new 52-week high today on volume
that is almost 50 percent higher than normal. The ascent of
SolarCity and Tesla to rock star status has been a boon for PBD
as the ETF is now flirting with a one-month gain of 14
To put the impact of Tesla and SolarCity on PBD into dollar
terms, look at situation this way: Through the first four months
of this year, the ETF gained 27 cents. In the past month, the ETF
is up $1.28.
Investors are discovering the utility of PBD as an alternative
Elon Musk ETF. For the week ending May 27, the ETF pulled in
almost $3.8 million of its $73.5 million in assets under
according to PowerShares data
Other top-10 holdings in the ETF include First Solar (NASDAQ:
) and SunPower (NASDAQ:
). Investors should note PBD is not fully allocated to U.S.
equities. Rather, the U.S. accounts for just over 41 percent of
the ETF's country weight and the fund features a combined 23.2
percent weight to emerging markets China, Brazil, Taiwan and
For more on ETFs, click
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Gain access to more investing ideas, tools & education.
Get Started on Marketfy, the first ever curated
& verified Marketplace for everything trading.