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5 ETFs Set to Soar on Tesla's Robust Q4 Deliveries
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Tesla Motors (TSLA - Free Report) reported better-than-expected deliveries for the fourth quarter 2020. The company produced 179,757 (163,660 Model 3 and Y, and 16,097 Model S and X) vehicles and delivered a record 180,570 (161,650 Model 3 and Y, and 18,920 Model S and X) vehicles.
The strong data came on the back of a rise in demand for its more affordable and newer models. Notably, Model 3 demand has been robust over the past 10 months despite the COVID-19 pandemic.
For the full year, the electric carmaker delivered 499,550 (442,511 Model 3 and Y, and 57,039 Model S and X) deliveries, up 36% year over year but slightly short of the 500,000 target due to the pandemic. It produced 509,737 (454,932 Model 3 and Y, and 54,805 Model S and X) vehicles in 2020, up 71% year over year.
Tesla expects another year of strong growth in vehicle deliveries as it has been aggressively expanding its vehicle production capacity. It entered the S&P 500 Index last month and has reported five consecutive quarterly profits. Tesla shares have exploded more than 700% over the past year (read: ETFs in Focus on Tesla's S&P 500 Debut).
Tesla currently has a Zacks Rank #1 (Strong Buy) and Growth Score of A. It belongs to a top-ranked Zacks industry (in the top 7%).
ETFs in Focus
The solid deliveries data has put the spotlight on ETFs having substantial allocation to this luxury carmaker. We have highlighted five of them below.
This ETF offers exposure to U.S. companies that produce a wide range of consumer goods, including food, automobiles, and household goods by tracking the Dow Jones U.S. Consumer Goods Index. It holds about 96 stocks in its basket with Tesla occupying the top position at 17.2% allocation. The fund has amassed $726.3 million in its asset base while trades in a volume of about 26,000 shares. It charges 43 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 Big ETF Stories of 2020 Worth Watching in 2021).
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
This product offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most-popular product in this space, with AUM of nearly $18.2 billion and an average daily volume of around 3.1 million shares. Holding 62 securities in its basket, Tesla takes the second spot with 15.4% of assets. The fund charges 0.13% in expense ratio and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services as well as technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials and transportation. This approach results in a basket of 42 stocks, with TSLA occupying the top spot with 12.4% share. The product has accumulated $1.6 billion in its asset base and charges 75 bps in fees per year. It trades in volume of 515,000 shares a day on average (read: Tech Tops in 2020: ETFs & Stocks That More Than Doubled).
This actively managed ETF provides access to companies developing technologies that support machine learning as well as those using automated processes. It holds 58 stocks in its basket with Tesla making up for the top firm at 10.8% of assets. The product has accumulated $4.3 million in its asset base since its debut in late February and charges 50 bps in annual fees. It trades in a light volume of 3,000 shares a day on average.
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket with Tesla accounting for 10% share. The product has accumulated $65.7 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 13,000 shares and has a Zacks ETF Rank #3.
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5 ETFs Set to Soar on Tesla's Robust Q4 Deliveries
Tesla Motors (TSLA - Free Report) reported better-than-expected deliveries for the fourth quarter 2020. The company produced 179,757 (163,660 Model 3 and Y, and 16,097 Model S and X) vehicles and delivered a record 180,570 (161,650 Model 3 and Y, and 18,920 Model S and X) vehicles.
The strong data came on the back of a rise in demand for its more affordable and newer models. Notably, Model 3 demand has been robust over the past 10 months despite the COVID-19 pandemic.
For the full year, the electric carmaker delivered 499,550 (442,511 Model 3 and Y, and 57,039 Model S and X) deliveries, up 36% year over year but slightly short of the 500,000 target due to the pandemic. It produced 509,737 (454,932 Model 3 and Y, and 54,805 Model S and X) vehicles in 2020, up 71% year over year.
Tesla expects another year of strong growth in vehicle deliveries as it has been aggressively expanding its vehicle production capacity. It entered the S&P 500 Index last month and has reported five consecutive quarterly profits. Tesla shares have exploded more than 700% over the past year (read: ETFs in Focus on Tesla's S&P 500 Debut).
Tesla currently has a Zacks Rank #1 (Strong Buy) and Growth Score of A. It belongs to a top-ranked Zacks industry (in the top 7%).
ETFs in Focus
The solid deliveries data has put the spotlight on ETFs having substantial allocation to this luxury carmaker. We have highlighted five of them below.
iShares U.S. Consumer Goods ETF (IYK - Free Report)
This ETF offers exposure to U.S. companies that produce a wide range of consumer goods, including food, automobiles, and household goods by tracking the Dow Jones U.S. Consumer Goods Index. It holds about 96 stocks in its basket with Tesla occupying the top position at 17.2% allocation. The fund has amassed $726.3 million in its asset base while trades in a volume of about 26,000 shares. It charges 43 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 Big ETF Stories of 2020 Worth Watching in 2021).
Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
This product offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most-popular product in this space, with AUM of nearly $18.2 billion and an average daily volume of around 3.1 million shares. Holding 62 securities in its basket, Tesla takes the second spot with 15.4% of assets. The fund charges 0.13% in expense ratio and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report)
This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services as well as technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials and transportation. This approach results in a basket of 42 stocks, with TSLA occupying the top spot with 12.4% share. The product has accumulated $1.6 billion in its asset base and charges 75 bps in fees per year. It trades in volume of 515,000 shares a day on average (read: Tech Tops in 2020: ETFs & Stocks That More Than Doubled).
Franklin Intelligent Machines ETF (IQM - Free Report)
This actively managed ETF provides access to companies developing technologies that support machine learning as well as those using automated processes. It holds 58 stocks in its basket with Tesla making up for the top firm at 10.8% of assets. The product has accumulated $4.3 million in its asset base since its debut in late February and charges 50 bps in annual fees. It trades in a light volume of 3,000 shares a day on average.
MicroSectors FANG+ ETN (FNGS - Free Report)
This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. It holds 10 equal-weighted stocks in its basket with Tesla accounting for 10% share. The product has accumulated $65.7 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 13,000 shares and has a Zacks ETF Rank #3.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>