3 ETFs Affected By Tesla S&P 500 Addition

3 ETFs Affected By Tesla S&P 500 Addition

Tesla Inc (TSLA) entered the S&P 500 on Monday and is now the seventh-largest stock in the benchmark, just ahead of Warren Buffett's Berkshire Hathaway (NYSE: BRK-B).

The entry of the electric vehicle juggernaut into the S&P 500 qualified Tesla for admittance into an array of exchange-traded funds where the stock previously didn't reside. On the other hand, there are some ETFs tracking offshoots of the S&P 500 that aren't rushing to include Tesla.

Still, there are more than 170 ETFs featuring Tesla exposure and the stock's entry into the S&P 500 is affecting ETFs beyond the SPDR S&P 500 ETF SPY and the like.

With that in mind, here are three ETFs Tesla is affecting in a big way following its inclusion in the S&P 500.

Consumer Discrepancy Select Sector SPDR (XLY)

By joining the S&P 500, Tesla became eligible for inclusion in derivative sector indexes and the powers that be at Standard & Poor's placed the stock in the consumer cyclical sector, qualifying it for admittance into the Consumer Discrepancy Select Sector SPDR XLY.

Think Tesla made a splash in the S&P 500? Think about what it's doing in XLY. The stock is now the ETF's second-largest component at a weight of 14.51%, behind only Amazon.

Putting Tesla's weight in XLY into context, the stock accounts for more of this ETF than Dow components Home Depot (HD) and McDonald's (MCD) combined. XLY now has one of the largest allocations to Tesla among all ETFs.

SPDR S&P 500 Growth ETF (SPYG)

The SPDR S&P 500 Growth ETF SPYG follows the growth offshoot of the S&P 500, meaning Tesla was a surefire addition to this benchmark and ETF. Tesla is also the seventh-largest holding in this ETF, but its weight of 2.94% far exceeds its heft in the S&P 500.

Tesla brings a little variety to SPYG, an ETF dominated by Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN). That trio combines for over 31% of SPYG's weight.

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