Tesla (NASDAQ:TSLA) has been a roller coaster. Shares have endured several 20% to 30% drops over the past five years, but shares have also been up by more than 1,000% during that time. Shares have also more than doubled over the past year.
Some investors are piling into Tesla, but they are not just retail investors. Many fund managers have poured billions of dollars into Tesla, and the EV maker makes up more than 10% of some ETFs’ holdings. Investors who want diversified portfolios that lean heavily toward Tesla may want to take a closer look at these ETFs.
ARK Autonomous Technology & Robotics ETF (ARKQ)
You can’t start any list of Tesla-leaning ETFs without mentioning an ARK Invest ETF. Cathie Wood has been a highly public Tesla bull for many years, and this fund shows it. ARKQ has 15.2% of its assets allocated to Tesla stock.
The fund primarily invests 38% of its assets in industrials, 32% of its assets in tech stocks, and 20% of its assets in consumer cyclicals. ARKQ is a top-heavy fund, with 63% of its assets in its top 10 holdings. It currently has a 0.75% expense ratio.
The fund has been a roller coaster. It has a 10-year annualized return of 16.7%, a 3-year annualized return of 6.2%, and a 50.2% return over the past year.
Roundhill Magnificent Seven ETF (MAGS)
The Roundhill Magnificent Seven ETF (NYSEARCA:MAGS) is a new ETF that only holds the Magnificent Seven stocks. It is an equal-weight fund that reallocates its positions every quarter to maintain equal allocation across all Magnificent Seven stocks. Tesla currently makes up 13.5% of the fund’s total assets.
MAGS follows a simple premise. The S&P 500 and Nasdaq Composite have done well largely because of a few mega-cap stocks, known as the Magnificent Seven stocks. Although the fund has only been around since April 11, 2023, it’s comfortably outperformed those two benchmarks.
The fund is up by 61% over the past year. The S&P 500 is up by 25% over the same time frame, while the Nasdaq Composite has gained 29% over the past year. MAGS currently has a 0.29% expense ratio.
The Consumer Discretionary Select Sector SPDR Fund (XLY)
The Consumer Discretionary Select Sector SPDR Fund (NYSEARCA:XLY) has a 0.09% expense ratio and has delivered an annualized 14.0% return over the past decade. XLY allocates 18.6% of its total assets to Tesla. The fund’s largest position is Amazon (NASDAQ:AMZN), which makes up 20.9% of the portfolio.
XLY has 50 holdings, and almost all of its stocks are in the consumer cyclical sector. The fund allocates 0.9% of its assets in the tech sector and 0.4% of its capital in the industrial sector. Everything else goes in the consumer cyclical sector.
ARK Innovation Fund (ARKK)
The ARK Innovation Fund (NYSEARCA:ARKK) is another Cathie Wood fund that puts a lot of its capital into Tesla. ARKK puts 14.9% of its total assets into the EV giant. The fund has been quite volatile. It has a 10-year annualized return of 12.7% but has a meager 2.6% annualized return over the past five years. ARKK has rebounded with a 28.8% return over the past year.
The ETF focuses on innovative growth-oriented companies. Almost a quarter of its assets are allocated to the tech sector, and its top ten holdings make up 64% of its total assets. ARKK has a 0.75% expense ratio.
SoFi Social 50 (SFYF)
The SoFi Social 50 (NYSEARCA:SFYF) has a 0.29% expense ratio and has delivered an annualized 16.9% return over the past five years. It’s also up by 53.3% return over the past year.
This ETF allocates 10.2% of its total assets to Tesla. Furthermore, it allocates 55% of its assets to its top ten holdings. It’s filled with Magnificent Seven stocks and high-flying tech stocks. Roughly one-third of its assets are in the tech sector, with consumer cyclicals making up an additional 28.2% of the fund’s total assets.
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