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Looking for Exposure to TSLA Stock? Try These Two ETFs

Looking for Exposure to TSLA Stock? Try These Two ETFs

Globe and Mail03-04-2025
Tesla's (TSLA) growth prospects remain robust, driven by its strong position in the electric vehicle (EV) market and progress in autonomous driving technology. The company's focus on cost efficiency, such as reducing the cost of goods sold per vehicle, enhances its financial position. While a drop in deliveries remains a key concern, TSLA's efforts to expand presence in new markets like Saudi Arabia are impressive. Thus, to gain exposure to TSLA stock, investors may consider investing in these two ETFs: Nightview Fund (NITE) and Vanguard Consumer Discretionary ETF (VCR).
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Let's take a deeper look at these two ETFs.
Nightview Fund
The NITE ETF is an actively managed fund aiming for long-term growth. It seeks to beat the S&P 500 Total Return Index over five years and invests in 15-25 undervalued U.S. stocks with strong growth potential.
TSLA stock constitutes 19.1% of the ETF's holdings. Apart from TSLA, some of the top stocks in the NITE ETF are Alibaba (BABA), Goldman Sachs (GS), and Taiwan Semiconductor (TSM). Overall, the ETF has $22.18 million in AUM. Also, it has an expense ratio of 1.25%. The NITE ETF has returned 6.48% in the past year.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 18 stocks held, 15 have Buys and three have a Hold rating. At $33.22, the average NITE ETF price target implies a 22.59% upside potential.
Vanguard Consumer Discretionary ETF
The VCR ETF tracks the performance of the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index. This index includes stocks of large, medium, and small U.S. companies in the consumer discretionary sector, such as retail, entertainment, and automotive industries. Importantly, Tesla stock accounts for 13.67% of VCR's total holdings.
Some of the top holdings in VCR ETF include Amazon (AMZN), McDonald's (MCD), and Home Depot (HD). Overall, the ETF has $5.57 billion in assets under management (AUM). Also, an expense ratio of 0.09% makes it cost-effective for long-term investors. Over the past year, the VCR ETF has generated a return of 8.9%.
On TipRanks, VCR has a Moderate Buy consensus rating based on 191 Buys, 93 Holds, and 10 Sells assigned in the last three months. At $415.19, the average VCR ETF price target implies 23.65% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to TSLA, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider NITE and VCR, as these ETFs offer exposure to Tesla stock.
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