Tesla Motors
TSLA
reported record deliveries for the first quarter, underscoring its strong growth and defying the global automotive semiconductor shortage that is hampering car production across the globe.
The solid delivery data is likely to boost the ETFs having a substantial allocation to this luxury carmaker like
Simplify Volt Robocar Disruption and Tech ETF
VCAR
,
Consumer Discretionary Select Sector SPDR Fund
XLY
,
Fidelity MSCI Consumer Discretionary Index ETF
FDIS
,
Vanguard Consumer Discretionary ETF
VCR
and
MicroSectors FANG+ ETN
FNGS
.
The company delivered a record 310,048 (295,324 Model 3 and Y, and 14,724 Model S and X) vehicles. This represents a slight increase from Q4, and was up 68% from a year-ago quarter. The electric carmaker produced 305,407 (291,189 Model 3 and Y, and 14,218 Model S and X) vehicles during the quarter (read:
U.S. Stocks Log Worst Q1 in 2 Years: Top-Ranked ETFs Shine
).
The remarkable data came despite several challenges. Tesla operations during the quarter were weighed down by a COVID-19 surge and new health restrictions in China, putting a temporary halt to production at the Shanghai factory for several days in March and April.
Tesla has been outperforming the market, having gained 2.6% so far this year. It has a Zacks Rank #1 (Strong Buy) and Growth Score of A. Tesla belongs to a top-ranked Zacks industry (in the
top 43%
). All these suggest a good time for the stock in the coming months, making the stock a compelling pick for investors heading into Q2.
ETFs in Focus
Simplify Volt Robocar Disruption and Tech ETF (VCAR)
Simplify Volt Robocar Disruption and Tech ETF is an actively managed ETF, seeking concentrated exposure to the leader of autonomous driving technology. It employs a call option overlay to seek boosts in performance during extreme moves up in Tesla, while holding a tech index for diversification, and put options as a hedge.
Simplify Volt Robocar Disruption and Tech ETF charges investors 0.95% in annual fees. It has accumulated $9.1 million in its asset base while trading in an average daily volume of 14,000 shares (read:
5 Best Sector ETFs of March
).
Consumer Discretionary Select Sector SPDR Fund (XLY)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index.
Consumer Discretionary Select Sector SPDR Fund is the largest and most-popular product in this space, with AUM of $20 billion and an average daily volume of around 12.4 million shares. Holding 60 securities in its basket, Tesla takes the second spot with 22% of assets. Consumer Discretionary Select Sector SPDR Fund charges 10 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF
FDIS
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 313 stocks in its basket. Of these, TSLA takes the second spot with a 13% share. Internet & direct marketing retail makes up for the top sector with a 25% share, followed by specialty retail (19.4%), hotels, restaurants & leisure (17.7%) and automobiles (15.9%).
Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.5 billion in its asset base while trading in a good volume of around 150,000 shares a day on average. Fidelity MSCI Consumer Discretionary Index ETF charges 8 bps in annual fees from investors and has a Zacks ETF Rank #2 with a Medium risk outlook.
Vanguard Consumer Discretionary ETF (VCR)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 304 stocks in its basket. Of these, Tesla occupies the second position with a 13.3% allocation. Internet & direct marketing retail takes the largest share at 25.6%, while automobile manufacturers, home improvement retail and restaurants round off the next two spots.
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, while volume is moderate at nearly 130,000 shares a day. The product has managed about $6.4 billion in its asset base and carries a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read:
Will ETFs Gain as US Consumer Confidence Improves in March?
).
MicroSectors FANG+ ETN (FNGS)
MicroSectors FANG+ 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 a 10% share.
MicroSectors FANG+ ETN has accumulated $69 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 39,000 shares and has a Zacks ETF Rank #3 (Hold).
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