Want to own a Tesla? Well now you can own part of the company
On December 21st, Tesla will be making its much anticipated inclusion into the S&P 500 (an index which tracks the top 500 companies in the USA), meaning that Raiz investors will own a slice of the company through their portfolio.
How does this work? When a stock gets included in the S&P 500, Funds and ETFs that track the performance of the S&P 500 will buy that stock in the correct volume to help match the performance of that index going forward. That means that IVV, the ETF which tracks the S&P 500 and sits in most of the Raiz portfolios (other than Emerald), will eventually need to include a slice of Tesla in its basket of shares.
In a nutshell, this means a slice of your Raiz balance will be invested in Tesla.
If you’re an Emerald investor, you already own a slice of Tesla in the ETHI (Global Sustainability Leaders) ETF!
Why is Tesla only now being included in the S&P 500 index, when it is worth over $500 billion? Good question. For a stock to be considered for inclusion in the S&P 500, it must meet a number of different eligibility criteria. Tesla has only recently met the criterion of reporting positive earnings over the most recent quarter, as well as over the most recent four quarters (summed together). So even though Tesla and Elon Musk have been household names for many years, this is the first time the stock will be part of the S&P 500 index, and therefore the IVV.
Before you go, don’t forget that if enough Raiz users sign up to Offsetters, one member will take home a Tesla S Performance! An Offsetters subscription is $3.70 per month.
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