Tesla Motors TSLA has been on a crazy ride with no sign of slowing down. After reporting the longest streak of profitability in the company’s history, the electric carmaker raised optimism by announcing a 5-for-1 stock split.

Tesla shareholders of record on Aug 21 will receive four additional shares at the close of trading on Aug 28. Post-split trading will begin on Aug 31. The news came following a 4-for-1 split announced by Apple AAPL in late July (read: Apple ETFs to Buy on Blowout Q3 & Stock Split News).

Stock splits have become rare on Wall Street, with just three S&P 500 components announcing splits in 2020, compared with an average of 10 over the past decade, according to the S&P and the Dow Jones indices.

Why Stock Split Suggests Further Rally

The stock split came at the right time as Tesla shares have become lofty. The stock has soared 229% this year, pushing its valuation to around $256 billion and surpassing the combined value of Ford Motor F and Toyota Motor TM. The euphoria surrounding growing electric-vehicle sales and Tesla’s possible inclusion in the S&P 500 Index is the main driver of the stock rally.

The move will make the stock more accessible to investors and employees, and attracts individual investors, who make small trades. This is because a stock split creates more shares of a company without changing the underlying dollar value of any single investor’s holdings. By increasing the number of shares available, the company can attract new investors who might otherwise not be able to afford a single share at a high price.

Following the news, Tesla shares jumped more than 6.3% in pre-market trade at the time of writing, after surging as much as 8% in after-market trade. The stock currently has a Zacks Rank #3 (Hold) and VGM Score of B. It belongs to a favorable Zacks industry (placed at the top 11% of 250+ industries). Per Robintrack, Tesla was second only to Apple as the most popular stock over the past 30 days on the Robinhood trading app (read: ETFs to Surge as Tesla Turns to Profit, Secures S&P 500 Entry).

ETFs in Focus

Investors seeking to tap Tesla’s potential surge should consider ETFs having double-digit allocation to this luxury carmaker. We highlight five of them in detail below.

First Trust Nasdaq Transportation ETF FTXR

This fund offers exposure to the 31 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. Tesla occupies the top position in the basket with 11.7% share. FTXR has amassed $6.7 million in its asset base and charges 60 bps in annual fees. It has shed 8.9% this year and has a Zacks ETF Rank #4 (Sell) (read: Transport ETFs Gain Despite Soft Q2 Earnings).

First Trust NASDAQ Global Auto ETF CARZ

This fund offers a pure-play global exposure to 34 auto stocks by tracking the NASDAQ OMX Global Auto Index. Tesla is the top firm accounting for 11.6% share. CARZ has a lower level of $19.6 million in AUM and charges 70 bps in fees per year. The product has gained 8.7% this year. It has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.

VanEck Vectors Low Carbon Energy ETF SMOG

This ETF tracks the Ardour Global Index Extra Liquid, which focuses on the performance of low carbon energy companies primarily engaged in alternative energy. It holds about 30 stocks in its basket with AUM of $137.2 million while charging 62 bps in fees per year. Tesla occupies the top position in the basket with 11.2% allocation. In terms of country exposure, the fund is skewed toward the United States with 71.4% share while Denmark and Sweden round off the next two spots. It has gained 30.2% this year.

First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN

This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $361 million. It charges 60 bps in fees per year and holds 43 securities with Tesla Motors taking the top spot at 10.2%. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: 6 ETF Picks for Historically Downbeat August).

MicroSectors FANG+ ETN FNGS

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 $49.4 million in its asset base and charges 58 bps in annual fees. It is up 50.1% so far this year.

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