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Elon Musk's Tesla
TSLA, the electric car maker whose shares have more than tripled this year, is going to be found in more ETFs after NASDAQ OMX Global Indexes announced the stock will replace Oracle
ORCL as a member of the Nasdaq 100.
Enterprise software maker is leaving the Nasdaq 100 because it is switching to a listing on the New York Stock Exchange. Oracle becomes the largest company by market value to make an exchange switch.
California-based Tesla will become a component of the NASDAQ-100 Index
NDX and the NASDAQ-100 Equal Weighted Index
NDXE prior to market open on Monday, July 15,
according to a statement issued by NASDAQ OMX Global Indexes.
That means Tesla will become a member of the PowerShares QQQ
QQQ, the NASDAQ 100 tracking ETF. Oracle is currently the fourth-largest member of the cap-weighted QQQ with a weight of 4.25 percent. Based on Tesla's market value of $14.05 billion at Monday's close, the stock would receive a larger weight in QQQ if it entered the ETF today than current holdings such as Wynn Resorts
WYNN, KLA-Tencor
KLAC and Expedia
EXPE, just to name a few.
Since Tesla will also be included in the NASDAQ-100 Equal Weighted Index, the stock will also likely become part of the First Trust NASDAQ-100 Equal Weighted Index Fund
QQEW and the Direxion NASDAQ-100 Equal Weighted Index Shares
QQQE.
Some ETFs have already
been benefiting from holding Tesla, a trend that could continue as fund managers that benchmark to the NASDAQ 100 are forced to scoop up the stock.
Those ETFs include the First Trust NASDAQ® Clean Edge Green Energy Index Fund
QCLN and the Market Vectors Global Alternative Energy ETF
GEX. GEX and QCLN have weights of 11.8 and 9.4 percent, respectively, to Tesla.
Then there is the PowerShares WilderHill Clean Energy Portfolio
PBW, which has been previously been referred to as the
Elon Musk ETF because the fund features exposure to Tesla and Musk's other company, SolarCity
SCTY.
For more on ETFs, click
here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Posted In: Long IdeasNewsSector ETFsBroad U.S. Equity ETFsShort IdeasSpecialty ETFsPre-Market OutlookMarketsMoversTechTrading IdeasETFsElon Musk
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