The 5 Best EV ETFs To Invest in Electric Vehicles - YouTube

Channel: Optimized Portfolio

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electric vehicles or evs are here to
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stay and are surging in popularity so ev
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etfs are also emerging to fill that
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thematic fund demand here we'll explore
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the best electric vehicles etfs to
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capture this narrow group of stocks
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why electric vehicles etfs with electric
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car sales skyrocketing electric vehicle
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stocks have been outpacing the broader
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stock market tax incentives for ev
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owners stricter emission standards
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government subsidies charging station
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rollouts more efficient battery
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technology and a shift away from
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reliance on fossil fuels will accelerate
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this adoption of more environmentally
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sustainable transport analysts doubted
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tesla and the ev market in general
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initially but the company has seen
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astronomical growth both in its vehicle
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sales and its share price newcomer
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rivian is seeing similar growth out the
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gate arc invest expects ev sales to
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reach 37 million by 2024 as battery
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power becomes cheaper and more efficient
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making electric cars more accessible
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they state according to wright's law for
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every cumulative doubling of units
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produced battery cell costs will fall by
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18
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these cost declines are critical to
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reaching price parity with gas powered
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vehicles as the largest cost component
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of an ev is its battery bloomberg also
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assembled some impressive eevee outlook
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stats here are a few nuggets evs hit 10
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percent of global passenger vehicle
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sales rising to 28 in 2030 and 58 in
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2040. price parity between evs and
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internal combustion vehicles is reached
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by the mid 2020s in most segments nearly
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60 percent of u.s households have two or
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more cars and many have the ability to
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install home charging making them ideal
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adopters as ev economics range and
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recharging options continue to improve
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the biden administration in the us have
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also explicitly stated the goal of
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building 550 000 ev charging stations
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over the next decade as well as wanting
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an all-electric federal vehicle fleet
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electric car etfs eliminate the need for
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investors to try to analyze and pick
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winners out of the myriad of choices of
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ev stocks some are small startups others
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are blue chip automakers committed to
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electrifying their product offering
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thematic ev etfs provide broad exposure
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to the segment to capture the success of
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any of the rising stars such as tesla as
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well as the technology going into these
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vehicles now we'll explore the five best
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electric vehicles etfs to access the
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market most also incidentally provide
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exposure to autonomous vehicles or avs
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first on the list is driv or drive the
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globalx autonomous and electric vehicles
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etf the globalx autonomous and electric
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vehicles etf is one of the most popular
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electric cars etfs with nearly one
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billion dollars in assets globalx has a
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solid track record for thematic etfs
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such as this one drive delivers global
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exposure to all aspects of the ev
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manufacturing process capturing firms
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involved in ev components technology
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development and manufacturing investors
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should note that drive provides
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comparatively more exposure to ev and av
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technology fuel sales drive trains
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sensors batteries mapping technology etc
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then pure ev exposure per se examples of
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large holdings include google chip maker
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intel software company microsoft etc
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that said familiar ev names like tesla
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and toyota are still in the top 10
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holdings providing roughly equal
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weighting across its 75 holdings this
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fund has an expense ratio of 0.68
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second on the list is idrv or idrive the
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ishares self-driving ev and tech etf
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unlike the name suggests the ishares
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self-driving ev and tech etf does not
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solely focus on self-driving evs it is
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very similar to drive but it's cheaper
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and more diversified with about a
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hundred holdings at any given time and
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an expense ratio of 0.47 it's also newer
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the fund was incepted in mid-2019 and
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has amassed a little over 300 million
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dollars in assets similar to driv
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i-drive's holdings provide global access
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to autonomous and electric vehicle
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manufacturers driving technologies
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companies ev battery producers ev
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battery materials producers and charging
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and components producers next on the
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list is hail or hail the spyder s p can
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show smart mobility etf hail is a
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broader futuristic transportation etf
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from spyder providing exposure to the
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areas of autonomous and connected
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vehicle technology drones and drone
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technologies used for commercial and
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civilian applications an advanced
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transportation tracking and transport
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optimization systems the fund uses an
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equal weighting methodology and has one
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of the lowest fees in the space at 0.45
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unlike the previous funds hale's 60
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holdings end up being pretty heavily
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concentrated in the united states at
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about 82 percent next on the list is
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k-a-r-s or cars the crane shares
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electric vehicles and future mobility
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etf cars provides exposure to companies
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engaged in electric vehicle production
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autonomous driving shared mobility
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lithium and or copper production
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batteries hydrogen fuel cell
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manufacturing or electric infrastructure
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while this focus is similar to drive
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from global x cars is much more of a
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pure ev play with less weight on avs
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crane shares has proven competency in
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chinese stocks and that shows here as 20
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percent of cars holdings are chinese
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companies cars has 60 holdings an aum of
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about 180 million dollars and an expense
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ratio of 0.70 percent cars is likely the
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most targeted ev fund on this list in
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terms of actual ev manufacturers next on
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the list is lit or lit the global x
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lithium and battery tech etf this is
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another fund from global x which more
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narrowly targets lithium miners and
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battery producers this is basically a
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broad play on the lithium industry only
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one application of which is electric
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vehicles interestingly lit has been
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around since 2010 and is the most
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popular fund on this list with nearly
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three billion dollars in assets it is
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also the most expensive with a fee of
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0.75
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lit's holdings are mostly small foreign
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companies that you've probably never
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heard of though it is exposed for 20
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percent to the united states and tesla
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is in its top 10 holdings other top 10
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holdings include panasonic lg and
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samsung in fact those four comprise over
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a quarter of lit's holdings by weight
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since lit is a play on the lithium
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industry its performance is not very
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highly correlated with that of the
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previous ev focused etfs what do you
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think of evs and ev etfs and how do you
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approach them in your portfolio let me
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know in the comments thanks for watching
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with every product or service i
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recommend and i recommend them because i
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genuinely believe they are useful