As usual,
Tesla Inc (NASDAQ:TSLA) is garnering plenty of headlines. Most recently, it s because the beloved and controversial stock entered the S&P 500, but there s more to the story.
What Happened: It seems like nary a day goes by that a new electric vehicle doesn t pop or a special purpose acquisition company (SPAC) focusing on the EV industry doesn t appear. However, Tesla is the barometer by which all EV rookies are measured.
That works in favor of the exchange-traded funds with hefty allocations to Elon Musk s company, including the
ARK Autonomous Technology & Robotics ETF (CBOE: ARKQ).
ARKQ is one of three ARK Investment Management ETFs featuring Tesla as the largest component, but ARKQ s 11.71% allocation to the stock exceeds that of its stablemates.
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Tesla’s addition to the SUP 500 will have a huge impact on the massive amount of assets that are tied to the benchmark index. Spencer Platt/Getty Images
In what is likely or at least hopefully the last major market event before the memorable 2020 ends,
Tesla has joined the
S&P 500 as of the market’s close on Friday, Dec. 18. The electric-car maker will be the most valuable company to ever be added to the widely followed index, and it will likely land as the sixth-largest company. This will have a huge impact on the massive amount of assets, both passive and active, tied to the benchmark index.