Intensifying Competition in U.S. ETF Market Drives Private Company Exposure Trend
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Benzinga
- Rise of Private Company ETFs: As competition in the U.S. ETF market intensifies, issuers are leveraging indirect investments in well-known private companies to attract investors, particularly amid a scarcity of IPOs, making private exposure a vital marketing tool.
- Liquidity and Valuation Challenges: Unlike publicly traded companies, private firms rely on fair value models for valuation, complicating liquidity for ETF managers who may struggle to increase private exposure quickly in response to inflows, thus heightening portfolio risk.
- Concentration Risk in Portfolios: With more ETFs shifting towards private company exposure, industry experts warn that investors may underestimate the concentration and liquidity risks inherent in these strategies, especially when market volatility arises, revealing potential vulnerabilities.
- Market Differentiation Strategy: Private exposure offers ETF issuers a unique way to stand out in a saturated market; however, investors must recognize that this strategy may lead to a more complex risk profile, particularly during unstable market conditions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 449.060
Low
25.28
Averages
401.93
High
600.00
Current: 449.060
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
