Tesla (NASDAQ:TSLA) CEO Elon Musk has significant power on social media, providing momentum to asset classes and changing the discourse in the market with a single tweet. He has close to 60 million devoted followers on Twitter (NYSE:TWTR) who watch his words for which stock or cryptocurrency to buy.
So today we are looking at two exchange-traded funds (ETFs) whose holdings could appeal to Musk and his fans.
1. ARK Autonomous Technology & Robotics ETF
Current Price: $85.84
52-Week Range: $52.63 - $101.11
Expense Ratio: 0.75% per year
Recent metrics suggest:
“The Artificial Intelligence in robotics market is expected to register a CAGR of 28% during the forecast period (2021-2026). Artificial intelligence (AI) and robotics prove to be a powerful combination for automating tasks and processes.”
Tesla has been in the news in recent weeks as the group is increasingly relying on artificial intelligence and robotics while it develops its city-driving software update, Full Self-Driving (FSD) V11. The electric vehicle maker has also been building a humanoid robot, namely the Tesla Bot.
The ARK Autonomous Technology & Robotics ETF (NYSE:ARKQ) invests in businesses that focus on technological developments in robotics, automation, autonomous transportation, energy storage, space exploration and 3D printing. Investors who follow Musk would concur that these topics are among his favorites.
ARKQ, which has 40 holdings, started trading in September 2014. The top 10 names make up about 53% of net assets of $3.1 billion. In terms of sectors, autonomous vehicles account for the largest share (42.9%), followed by robotics (19.4%) and energy storage (12.6%).
Leading holdings include Tesla; global positioning system (GPS) group Trimble (NASDAQ:TRMB); Kratos Defense Security Solutions (NASDAQ:KTOS), which specializes in unmanned systems, satellite communications and cybersecurity solutions; and Unity Software (NYSE:U), which offers software tools for the gaming industry.
The fund returned 49.5% in the past year and 13% year-to-date. It hit a record high in mid-February. Since then, many of the names in the fund have come under pressure. Interested readers could regard any move toward $83 as a better entry point.
2. Procure Space ETF
Current Price: $31.40
52-Week Range: $20.26 - $32.40
Dividend Yield: 1.15%
Expense Ratio: 0.75% per year
This ETF could appeal to investors who are interested in Musk’s plans to land humans on Mars in a few years. His company, SpaceX, has high ambitions and is even collaborating with NASA on a number of projects.
For example, as part of the Artemis program, NASA has chosen SpaceX to continue development of the first commercial human lander that will safely carry the next two American astronauts to the moon.
The Procure Space ETF (NASDAQ:UFO) gives exposure to companies involved in space-related industries. The fund began trading in April 2019.
UFO, which has 36 holdings, tracks the S-Network Space Index. Almost 76% of the businesses are based in the US Next in line are firms from France, Canada, Luxembourg and Japan, among others.
About 44.3% of the companies are from the communication services sector, followed by the industrials sector (32.67%) and information technology (15.07%). The fund’s top 10 holdings comprise about 55% of net assets of $126.1 million.
Globalstar (NYSE:GSAT), which offers mobile satellite services; Garmin (NASDAQ:GRMN), which provides GPS navigation and wireless devices; Trimble; Iridium Communications (NASDAQ:IRDM), which offers voice and data communications services; and Canadian space technology group MDA (TSX:MDA) are among the leading names in the roster.
Over the past 12 months, UFO is up 44.6% and returned 23.7% so far this year. The fund also hit an all-time high in February. Interested investors who eye the final frontier could consider buying the dips.