Once Again, Tesla Powers Alt Energy ETFs

Shares of Elon Musk’s Tesla Motors (NasdaqGS: TSLA) are up 5.5% Monday and flirting with all-time highs after Deutsche Bank raised its price target on the stock to $310 from $220.

At this writing, Tesla is trading just under $262, implying upside of more than 18% to Deutsche Bank’s price target. Some traders have even more ambitious forecasts for Tesla than Deutsche Bank with at least one money manager recently saying the stock could double.

Investors looking to get a slice of another potentially jaw-dropping run from California-based Tesla have a few options among exchange traded funds, though it should be noted that despite the stock’s 32.5% billion market cap (that is bigger than General Mills (NYSE: GIS)), Tesla is a top-10 holding in just 11 ETFs, according to S&P Capital IQ data.

The two “usual suspects” among Tesla ETFs are the Market Vectors Global Alternative Energy ETF (NYSEArca: GEX) and the First Trust NASDAQ Clean Edge Green Energy Index Fund (NasdaqGS: QCLN). GEX and QCLN each feature Tesla as their largest holdings and on a day when the stock is up 5.5%, GEX and QCLN are higher by 2.4% and 2.3%, respectively. [A Look at Elon Musk ETFs]

There are important differences, not the least of which is GEX’s weight to Tesla which is 305 basis points larger than QCLN’s (12.25% for the former versus 9.2% for the latter). Still, it is hard to ignore the impact Tesla’s rise has on these ETFs. Combined, GEX and QCLN have about $227 million in assets under management, $25.5 million of which has come into the funds just this year.

After QCLN’s 9.2% weight to Tesla, ETF allocations to the stock drop significantly, but the PowerShares DWA Consumer Cyclicals Momentum Portfolio (NYSEArca: PEZ) features a fair 3.84% allocation to the stock.