ACES - These ETFs fell as Rivian dropped on convertible note offering

2023-03-07 13:45:54 ET

Exchange traded funds tied to Rivian Holdings ( RIVN ) dropped during Tuesday's intraday session following the company's green convertible debt offering of $1.3B .

RIVN is owned by 132 different ETFs and forms a major part of First Trust NASDAQ Clean Edge Green Energy Index Fund ( NASDAQ: QCLN ), with a portfolio weight of 4.60% as per ETF.com . This is the highest concentration in any ETF.

QCLN is down about 1.2% after RIVN plunged more than 11% in Tuesday's intraday session.

Other ETFs with a relatively high concentration of RIVN stock are also down namely: SoFi Social 50 ETF ( NYSEARCA: SFYF ) -1% ; Innovator Loup Frontier Tech ETF ( NYSEARCA: LOUP ) -1.1% ; ALPS Clean Energy ETF ( NYSEARCA: ACES ) -0.9% .

RIVN shares plunged more than 11% after proposing a $1.3B of green convertible senior notes due 2029 to qualified institutional buyers. The funds will be utilized to finance, refinance, make direct investments in, in whole or in part, current and/or future eligible green projects.

For more on RIVN's long-term prospects, Seeking Alpha contributor Li Eason says, "Rivian is a company set up for success not just in the short run, but for years to come. I think the hold is over ."

However, Rivian gets a Sell rating from Seeking Alpha's Quant Rating System, due to decelerating momentum and a lack of profitability when compared to other Consumer Discretionary stocks.

RIVN is ~64% lower for the year. The stock has underperformed the broader market index along with many of its peers.

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