Confirming that, yes, ETFs are in a fact useful to gain access to hot stocks, particularly for investors looking to avoid savage losses, are these statistics. In late May Tesla was 17% of QCLN’s weight. GEX had combined weight of nearly 13% to Tesla and SolarCity. [Musk’s Ascent Jolts These Small ETFs]
As of Monday’s close QCLN had a 5% allocation to Tesla and a 5.8% weight to SolarCity. As of Tuesday’s close, the two stocks combined for just 9% of GEX’s weight.
It is simple math: Falling allocations to Tesla have buffered GEX and QCLN against nasty November declines. As for the Guggenheim Solar ETF (NYSEArca: TAN) and the Market Vectors Solar Energy ETF (NYSEArca: KWT), this year’ two best non-leveraged ETFs, each has SolarCity exposiure, but both have traded higher this month. [Seduced by Solar ETFs]
