Three ETFs Elon Musk May Be Driving Higher

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Feb. 28 (Bloomberg) –- Bloomberg’s Eric Balchunas reports on three ETFs Elon Musk might be driving higher. He speaks to Julie Hyman on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Elon musk is on top of the world.

The entrepreneur made 1.1 billion dollars this week as shares of does the -- tesla gained 16% on higher sales and plans for a new factory.

Here with three etf's the billionaire might be bringing higher.

A lot of them have to do with alternative energy.

No shocker.

First of all, if you are looking at etf's, the plain-vanilla ones don't have any exposure to elon musk companies.

You have to go to the niche area.

One example is the market vectors global alternative energy.

It has 18% exposure to elon musk companies, 14% in tesla, 4% in solarcity.

It is up 12% year-to-date.

Of the 12%, elon musk is personally responsible for a .5%. it is rare to see one person have such an effect on an etf holding 40 stocks.

Another example is the first trust green energy etf.

This one is focused on u.s. companies.

Elon musk companies are about 18%. very heavy with elon musk companies.

This one is up 16%. the third one is the global-x etf.

I can imagine that is heavily traded.

Lithium goes into batteries, right?

This announcement of the world's largest battery factory, this popped on that.

Volumes up over 100,000 shares.

It is growing.

A very niche etf, only tracking 20 companies.

The top 10 account for 80% of the portfolio.

Due to this announcement, and smart phones and iphones using lithium, it is pretty well-positioned for the future.

Looking like a decent value play and starting to get momentum.

I would imagine overall these alternative energy etf's, there must be a lot of volatility.

You see volatility in solar stocks.

Tan is a solar etf.

Even though you might be trying to ride the mosque wave -- musk wave, it is a little cautionary.

Tesla itself is volatile.

Maybe a little caution is warranted with these?


I refer to using niche etf's as cooking with spices.

This is to put on the outer there.

You like the story, put it on there, except that you can participate in something like elon musk's magic.

Once these companies get bigger, they are going to return last.

Then they will be in the big indices.

That is when a lot of people -- if you want to participate in the early growth spurts you have to go to the niche etf's. let's get to the taker of the week, mna.

It has been a busy time for m&a. the most since 2007. this is the index iq merger arbitrage etf.

Literally a hedge-find replication etf.

It does long the target companies and shorts out other indices to isolate the price from the time the announcement is made to the time the deal is done.

By doing that, it doesn't kill it, it doesn't outperform the s&p, but it gives you 3% return year-to-date, 9% the past year, but with less than half the volatility of the s&p. it is a good equity diversifier.

The correlation, it is the same -- it is designed to mimic a hedge fund.

Taking a competition prior -- strategy and packaging it for the masses.

It is way cheaper than a hedge fund, which is two and 20 typically.

The return, 9% over the past year, is double the average merger-arbitrage hedge fund.

Town of a poor man's hedge fund etf.

Eric balchunas, nice dating -- digging on that one.

That is it for etf friday.

Talking about smart stuff.

This text has been automatically generated. It may not be 100% accurate.


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