Tumbling gas prices are a major driver for waning electric car demand. The current average price of regular gas is $2.30 per gallon, which is substantially down from $3.40 last year and $3.60 in 2013. In some states, the average gas price is even lower than $2 (read: Q4 Outlook for Oil & Gas ETFs).
This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $65.5 million. It charges 60 bps in fees per year and trades in lower volume of around 19,000 shares per day. In total, the product holds 46 U.S. securities with Tesla Motors taking the top spot in the basket at 8.8%. QCLN is down 20.8% in the year-to-date timeframe (read: Greener Days Ahead for Clean Energy ETFs?).
Tesla Launches Model X: Time to Bet on Its ETFs?
Falling gas prices are shifting consumer preference back to gas guzzlers. In the first eight months of the year, sales of SUVs and crossovers went up 12.8% year over year while sales of cars dipped 3.1% from the year-ago level, as per Wall Street Journal.