Tesla’s success has helped these ASX-listed ETFs beat the market
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Tesla’s (NDQ:TSLA) United States listing has not prevented its success reaching Australian shores.
A handful of ASX Exchange Traded Funds (ETFs) have positions in the Elon Musk-founded electric vehicle maker among other companies.
ETFs are managed funds that are listed on exchanges and can be bought and sold like any other listed company. They are managed by portfolio managers from financial institutions which buy and sell stocks on a regular basis.
In the last 12 months Tesla’s NASDAQ-listed shares rocketed more than 800 per cent to over $US2,000 ($2,781).
Admittedly a stock split will cut this price to a fifth of its value today.
But its current market capitalisation of $US377bn ($523bn) makes Tesla the most valuable car company in the world.
According to Bloomberg, there are three ASX ETFs that have invested in Tesla and a couple of them have outperformed the ASX ETF market.
While the average ASX ETF is down by 5 per cent in 2020, the biggest investor in Tesla — ETF Securities’ FANG ETF (ASX:FANG) — has gained 44 per cent since its debut in early March.
It owns just over 4,000 shares in Tesla, worth just over $12m and accounting for 15.66 per cent of its net holdings.
While Tesla is the fund’s largest holding, it also owns shares in Apple, Amazon and Netflix which have also witnessed a solid 2020.
Another ETF that has gained from Tesla’s success is the ETF Securities’ Battery Tech and Lithium ETF (ASX:ACDC).
This ETF only holds $1.5m worth of Tesla shares, but this still accounts for 5.74 per cent of its portfolio and is the second biggest holding behind Hong Kong-listed battery products maker Tianneng Power International (HK:819).
This ETF also holds shares in older car makers pivoting to electric vehicles, such as Nissan and Renault, as well as ASX battery metals stocks Galaxy Resources (ASX:GXY) and Pilbara Minerals (ASX:PLS).
While it has been a tough few years for battery metals, Pilbara Minerals said earlier in August battery metals sentiment has finally turned positive, as COVID-19 economic stimulus incentivises electric vehicle makers, and Tesla becomes the world’s most valuable auto-maker.
The fund is up 14 per cent in six months and up nearly 40 per cent over the last 12 months.
There is a third ETF on the ASX with some exposure to Tesla — the BetaShares FTSE RAFI US 1000 ETF (ASX:QUS).
This fund aims track the performance of the 1000 largest US companies.
According to Bloomberg, it owns just 18 Tesla shares, worth just over $50,000, a blip of its total $47.2m holdings.
This fund hasn’t been as successful in 2020, down 3 per cent in the last 12 months and 13 per cent in the last 6 months.