Tesla’s stocks are going through the roof right now, and so is a heavy exchange-traded fund that has invested tons into the electric vehicle (EV) company.
As reported by Yahoo Finance, Tesla (NASDAQ: TSLA) heavy exchange-traded fund ARK Innovation ETF (NYSE: ARKK) received a record influx of money on Wednesday, ultimately amounting to $124 million USD.
Throughout the year, the fund has seen $3.1 billion USD from investors, amounting to $7.4 billion USD in total assets, and ultimately investing 10% of its total asset value into Tesla on August 19th. To date, the ETF has returned 77.4%, while Tesla has returned about 378% YTD.
$ARKK ARK Innovation ETF Top stock up 156% from low. Close: 88.87 VolvsAvg: 1.19 Liq: $177M https://t.co/TwPMp6pbEV
— Stock Market Genius (@stockmktgenius) August 19, 2020
Cathie Wood, the ETF’s CEO, actively runs and maintains the fund along with a team of analysts and other trading professionals. The group focuses primarily on stocks of technologically innovative companies and other future-thinking businesses.
As both Elon Musk‘s personal fortune and Tesla’s stock have grown immensely over the past week, it should come as no surprise that the company’s ETF is also performing well. The bundle also includes investments in InVitae Corp (NYSE: NVTA), Square Inc (NYSE: SQ), and Roku Inc (NASDAQ: ROKU), among others.
As the ETF grows alongside its heavily-invested-in partner Tesla, the fund will continue to benefit those trading, and now it has more capacity to look elsewhere for technological innovation.
Tesla’s shares have surged over 50% since the company announced a 5-for-1 stock split is coming, eligible for shareholders with stock as of August 21, 2020, with split-adjusted trading set for the end of the month.
