Electric vehicle maker Tesla Inc (NASDAQ: TSLA) and chip maker NVIDIA Corporation (NASDAQ:NVDA) (NASDAQ: NVDA) are among the top ten companies that are part of popular investor Cathie Wood’s ARK Transparency ETF (NYSE:CTRU) (BATS: CTRU), which began trading on Wednesday.
What Happened: The ninth fund under the Ark Invest domain tracks the stock price movements of the 100 most transparent companies in the world, with focus on higher environmental, social and governance standards.
The ETF owned 96 shares in Nvidia and 26 in Tesla, ahead of its first trading debut on Wednesday. Nvidia has a weight of 1.51% while Tesla has 1.33% weight in the transparency ETF, as per the data from the company's website.
At least seven out of its top 10 holdings are linked to the technology sector.
The new fund excludes sectors such as alcohol, gambling, banking and oil and gas and counts Cloudfare Inc (NASDAQ: NET) and Bloom Energy Corp (NYSE:BE) (NYSE: BE) among the top ten holdings.
The fund would not invest in pre-revenue companies and aim for companies with a minimum of $1 billion market capitalization. Mega cap, or companies with over $100 billion market cap, constitute a 20% weight of the fund, as per the fact sheet.
Apple Inc (NASDAQ: NASDAQ:AAPL), Starbucks Corp (NASDAQ: NASDAQ:SBUX), Netflix Inc (NASDAQ; NASDAQ:NFLX), and Amazon.com Inc (NASDAQ: NASDAQ:AMZN) are part of the fund.
No other automaker other than Tesla has made it to the list.
Price Action: CTRU closed 0.11% higher at $20.30 a share on Wednesday.