3 ETFs With High Tesla Exposure for Risk-Averse Investors

3 ETFs With High Tesla Exposure for Risk-Averse Investors

By Michael Chen

March 2, 2025 at 09:08 PM

Tesla's significant market presence and volatility make ETFs an attractive option for investors seeking exposure to the company. Here are three ETFs with substantial Tesla holdings:

VanEck Vectors Low Carbon Energy ETF (SMOG)

  • Tesla weight: 5.41%
  • Focus: Alternative energy companies
  • Top holdings: BYD Co. Ltd. (8.9%), Nextera Energy Inc. (7.58%)
  • Net expense ratio: 0.61%
  • Net assets: $120.6 million
  • Five-year return: 6.19%
  • One-year return: 6.47%

ARK Industrial Innovation ETF (ARKQ)

  • Tesla weight: 11.26%
  • Focus: Automation and technological innovation
  • U.S. company exposure: 86.12%
  • Other top holdings: Teradyne Inc., Kratos Defense & Security Solutions
  • Net assets: $1.01 billion
  • Expense ratio: 0.75%
  • Five-year return: 16.85%
  • One-year return: 56.18%

First Trust NASDAQ Clean Edge Green Energy ETF (QCLN)

  • Tesla weight: 9.9%
  • Focus: Clean-energy technologies
  • Top holdings: Rivian (7.19%), First Solar (7.17%), ON Semiconductor (6.39%)
  • Expense ratio: 0.59%
  • Net assets: $510.39 million
  • Five-year return: 5.46%
  • One-year return: -2.47%

Additional Tesla ETF Options:

  • Simplify Volt TSLA Revolution ETF (TESL): 78% Tesla exposure
  • T-Rex 2x Inverse Tesla Daily Target ETF (TSLZ): Inverse exposure to Tesla

Why Choose Tesla ETFs?

  • Reduced volatility compared to direct stock investment
  • Diversification across similar companies
  • Professional management
  • Cost-effective exposure to Tesla's growth potential

These ETFs offer varying degrees of Tesla exposure while providing diversification benefits, making them suitable alternatives to direct stock investment for risk-conscious investors.

Related Articles

Previous Articles