The advantage of a Tesla ETF over the stock itself was on full display last month when the First Trust NASDAQ Clean Edge Green Energy Index Fund (NasdaqGS: QCLN) rose 1.7%. QCLN currently has a 6.65% weight to Tesla, making it the ETF’s fifth-largest holding. Interestingly, Musk’s SolarCity (NasdaqGM: SCTY) is QCLN’s sixth-largest holding with a weight of 6%.
The Market Vectors Global Alternative Energy ETF (NYSEArca: GEX), which for much of this year has held the largest ETF allocation to Tesla, was higher by 0.15% in October. Nothing to brag about, but far better than a 17% loss.
Tesla’s was once GEX’s largest holding, but the aforementioned $4.1 billion loss in market cap has relegated the stock to the third spot in the ETF. GEX is not Tesla, but the ETF is up 64% this year and its worst mutli-week loss has been 12.2%. There is a lesson in that.
Market Vectors Global Alternative Energy ETF
