“You’re investing in its early days, and you’re going to see it grow and play out in the future,” Islam said.
However, she warned that many ETFs may not be as focused as investors assume. Some funds include tech giants like Microsoft and Nvidia, which may already be present in a diversified portfolio. Investors seeking pure exposure to autonomous vehicle plays should investigate fund holdings carefully.
“Lots of autonomous vehicle ETFs include Tesla and industry enablers like Nvidia and Microsoft,” Islam noted.
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Play It Safe With an ‘Opportunity Portfolio’
Even if investors are confident in Tesla’s vision, experts like Boneparth recommend placing riskier, high-reward investments in what’s often called an “opportunity portfolio.” This is a small slice of a broader financial plan that’s reserved for adventurous bets.
“5% to 10% of your overall investable net worth being put towards things that are more adventurous or opportunistic is usually where we start the conversation,” Boneparth advised.
