Market Overview

3 Electric Vehicle ETFs To Floor It With

3 Electric Vehicle ETFs To Floor It With

Tesla (NASDAQ: TSLA) is just one example and a stellar one at that, which is to say electric vehicle stocks are on fire this year.

While a spate of small companies small, obscure electric vehicle manufacturers are striking while the iron is hot and testing the initial public offering market, there are credible fundamentals backing the ascents Tesla and other established players in this arena.

“The Electric Vehicles Market is projected to reach 26,951,318 units by 2030 from an estimated 3,269,671 units in 2019, at a compound annual growth rate of 21.1%,” according to Markets and Markets research.

That buoyant forecast could bolster the case for the following electric vehicle exchange-traded funds.

Global X Autonomous & Electric Vehicles ETF (DRIV)

The Global X Autonomous & Electric Vehicles ETF (NASDAQ: DRIV) is nearly 2 1/2 years old and considering how hot the EV theme is, the fund is somewhat obscure with just $30 million in assets under management.

Up almost 12% year-to-date after hitting an all-time high on Monday, DRIV may be an underappreciated story. What's notable about this fund's ascent is that it's not heavily dependent on Tesla as a primary driver of returns. In fact, Elon Musk's company accounts for less than 3% of DRIV's weight. Rather, the Global X ETF offers a deeper reach into the EV ecosystem, featuring exposure to manufacturers as well as components makers.

DRIV follows the Solactive Autonomous & Electric Vehicles Index and its top two holdings are high-flying Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA).

SPDR S&P Kensho Smart Mobility ETF (HAIL)

Up 18.21% this year, the SPDR S&P Kensho Smart Mobility ETF (NYSE: HAIL) also joined the all-time high club on Monday. Like its aforementioned rival DRIV, HAIL isn't excessively allocated to a single stock.

And while HAIL isn't a dedicated EV ETF per se, it does offer solid reach into a variety of manufacturers as Nio (NYSE: NIO), Workhorse (NASDAQ: WKHS) and Tesla are found among the fund's top 10 holdings. HAIL's 4% Workhose weight is one of the largest such exposures among all ETFs.

Like DRIV, HAIL also offers a deep bench in terms of broad EV exposure. The SPDR fund features exposure to more than 15 industry groups.

iShares Self-Driving EV and Tech ETF (IDRV)

The iShares Self-Driving EV and Tech ETF (NYSE: IDRV) is one of the newer offerings in this category at a little over a year old.

It has a deep bench of 101 stocks, which is sizable compared to other thematic offerings and the fund is an option for investors looking for decent Tesla exposure as the stock is IDRV's largest holding at a weight of 6%.

That plus Apple and Nvidia combine for 9.5%. Add those three up and IDRV has the goods to at least pique investors' interest.


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