ANALYSIS: Want To Own Tesla Stock? Two ETFs for Exposure With Lower Risk

(Investing.com) - Tesla is one of the most-watched names as Wall Street indices march steadily higher. Shares in the California-headquartered electric vehicle manufacturer hit a record high of $648.72 on Dec 7.

Tesla Weekly Chart

During the third quarter, revenue was $8.77 billion. It also generated a profit of $331 million, making Q3 the company's fifth straight profitable quarter. Gross margin stood at 27.7%,

Year-to-date, the stock is up over 600%, so $1,000 invested in January 2020 would now be worth over $7,000. However, on a short-term basis, Tesla's stock is highly volatile. As a result, many retail investors may be hesitant about adding the carmaker's shares to their portfolios.

One way to participate in Tesla's growth story, without having to endure the stomach-churning intraday moves, could be to buy an exchange-traded fund (ETF) that includes TSLA stock as a holding.

On Dec 21, the EV group will be added to the S&P 500 index. Then any fund, such as the Standard and Poor's Depository Receipts (SPDR) S&P 500 ETF, that tracks the index will include access to Tesla shares. There are currently well over 150 ETFs that include shares of the company among their holdings. Here are two such funds:

iShares U.S Consumer Goods ETF

• Current Price: $168.70
• 52-Week Range: $92.00-167.48
• Dividend Yield: 2.01%
• Expense Ratio: 0.43%

The iShares U.S. Consumer Goods ETF provides exposure to U.S. consumer goods firms, such as food, automobiles, and household items. The fund started trading in June 2000, and assets under management are $711 million.

SoFi Select 500 ETF

• Current Price: $13.70
• 52-Week Range: $7.84 - $14.20
• Dividend Yield: 1.17%
• Expense Ratio: N/A (fees currently waived)

The SoFi Select 500 ETF gives access to the 500 largest publicly-traded U.S. companies as measured by market capitalization. In determining companies' weightings in the ETF, the fund managers use metrics including sales growth and forward-looking revenue estimates.

SFY Weekly Chart

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