Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

An ETF for Elon Musk Fans


Here's one ETF that puts weight into both SolarCity and Tesla.

Editor's Note: This content was originally published on 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. SolarCity (NASDAQ:SCTY), 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 Tesla (NASDAQ:TSLA), 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 Fund (NASDAQ:QCLN). 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 (NYSE:KWT) 34 holdings, but the larger Guggenheim Solar ETF (NYSE:TAN) 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 (NYSE:PBW).

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 fund 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 First Solar (NASDAQ:FSLR), Trina Solar (NYSE:TSL) and SunPower (NASDAQ:SPWR) found among the ETF's top-10 holdings.

Until other alternative energy ETFs 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.

Below, find some more great ETF and market content from Benzinga:

Apple Tops New WisdomTree Dividend ETF

Saks and Neiman Marcus Merger at the Rumor Stage

Will Microsoft's Xbox One Help or Hurt Comast, Other Cable Giants?

Twitter: @Benzinga

Benzinga Pro covers this and all market news in real time. Get your free trial here.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos