3 Top ETFs With Major Tesla Holdings

3 Top ETFs With Major Tesla Holdings

By Michael Thornton

March 2, 2025 at 09:09 PM

Tesla's exceptional market performance and high volatility make ETF investments an attractive option for gaining exposure to the company while managing risk. Here are three prominent ETFs with significant Tesla holdings.

VanEck Vectors Low Carbon Energy ETF (SMOG) The fund invests primarily in alternative energy companies, with Tesla comprising 5.41% of its portfolio. Other major holdings include BYD Co. Ltd. (8.9%) and Nextera Energy Inc. (7.58%). SMOG maintains a diverse portfolio of small and mid-cap companies focused on biofuels, wind, solar, hydro, and geothermal energy sources.

ARK Industrial Innovation ETF (ARKQ) ARKQ focuses on companies pioneering automation and technological innovation. Tesla represents its largest holding at 11.26%, with significant investments in U.S. companies (86.12% of portfolio). The fund has demonstrated strong performance with five-year annualized returns of 16.85%.

First Trust NASDAQ Clean Edge Green Energy ETF (QCLN) This ETF tracks the NASDAQ Clean Edge Green Energy Index, investing in companies developing clean-energy technologies. Tesla accounts for 9.9% of its holdings, alongside other innovative companies like Rivian Automotive (7.19%), First Solar (7.17%), and ON Semiconductor (6.39%).

Key Investment Considerations:

  • The Simplify Volt TSLA Revolution ETF (TESL) offers concentrated Tesla exposure with approximately 78% allocation
  • T-Rex 2x Inverse Tesla Daily Target ETF (TSLZ) provides inverse exposure for bearish investors
  • ETFs offer reduced volatility compared to direct Tesla stock investment while maintaining exposure to the company's growth potential

These ETFs provide investors with varying degrees of Tesla exposure while offering portfolio diversification and risk management benefits through exposure to related clean energy and technology sectors.

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