A massive shift to electric vehicles (EVs) is underway. This transition will benefit electric vehicle makers and other suppliers, including software providers, semiconductor suppliers, component and part manufacturers, battery producers, and lithium miners. Investors interested in this megatrend have lots of options. For example, they could invest directly in electric car stocks or in companies that manufacture EV batteries. Here we discuss some Electric Vehicle ETF.
KraneShares ETF
The KraneShares Electric Vehicles & Future Mobility ETF tracks the Bloomberg Electric Vehicles Index. Its top holding is Contemporary Amperex Technology, or CATL, a leading Chinese battery manufacturer that doesn’t trade on U.S. exchanges. Other major holdings include Tesla and China’s NIO (NIO 3.87%) and BYD (BYDDY 1.29%). This ETF had an expense ratio of 0.72%, total assets of almost $90 million in late 2024, and more than 60 total holdings.
IShares ETF
The iShares Self-Driving EV and Tech ETF focuses on businesses that intention to permit self-riding and self-sustaining vehicles. It tracks the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index. The ETF had approximately 50 holdings and internet assets of more than $one hundred ninety million in overdue 2024. Its cost ratio is zero.47%. Notable holdings have been Tesla, Li Automotive, BYD, NIO, and Rivian Automotive (RIVN 2.24%).
Simplify ETF
This ETF takes a concentrated technique. It focuses on the few companies that appear poised to dominate the EV and self-sustaining riding industry. The ETF further complements that focused publicity with alternatives. That method makes it a high-danger, excessive-reward manner to play the EV quarter. As of past due 2024, this ETF’s pinnacle retaining become Tesla, at a 17% goal allocation of its total holdings break up between an 11% equity function and a roughly 6% name options function.
Kensho ETF
This ETF focuses on U.S.-listed companies participating in the smart transportation sector, which encompasses EVs, AVs, transport systems, and drones. The fund tracks the S&P Kensho Smart Transportation Index. The fund holds several EV makers, including Tesla, NIO, and another Chinese EV manufacturer, Li Auto (LI 1.84%), in the top 10. In addition, other notable holdings include Nvidia, Cummins (CMI -0.35%), Allison Transmission (ALSN -0.62%), and Aurora Innovation (AUR -1.15%). The ETF comes with an expense ratio of 0.45% and had about $25 million of AUM in late 2024.
Global X ETF
This ETF provides diversification across all aspects of the EV industry, skewing toward autonomous vehicles (AVs). The Global X Autonomous & Electric Vehicles ETF had almost $425 million of net assets under management (AUM) in late 2024 and 75 distinct holdings. The ETF’s top holdings include Alphabet (GOOGL 1.13%) (GOOG 1.16%), Nvidia (NVDA -3.12%), Microsoft (MSFT -0.59%), and Apple (AAPL -0.39%). Major automakers, including Tesla (TSLA -1.41%) and General Motors (GM -0.57%), which plans to go all-electric in the coming years, are further down the list.
If you want to take advantage of this sizeable change within the transportation area. Without having to pick out amongst character EV shares, proudly owning stocks in an EV-targeted exchange-traded fund is a smart desire. Investors have numerous electric vehicle ETF to select from, all of that may advantage huge cost within the years and a long time in advance as the transition to EVs quickens.
