Despite challenges in the U.S., electric vehicle sales continue to rise overseas. With demand growing in Europe and in China in the opening months of the year, investors would do well to consider the KraneShares Electric Vehicles and Future Mobility ETF (KARS ). The fund currently trades above its Simple Moving Averages as of mid-March.
Sales of electric vehicles (EVs) continue to gain market share in the European Union. January sales of battery electric vehicles made up 15% of the market, a 4% gain over January 2024’s market share according to data from the European Automobile Manufacturers’ Association. Additionally, hybrid-electric vehicles remain the favorite in Europe, accounting for 34.9% of the EU’s new car market as of January.
Meanwhile, EVs (new energy vehicles) made up 48.8% of all new vehicle sales in China in February, reported Reuters. China remains the largest and arguably most competitive market for electric vehicles globally. Despite recent challenges in the U.S. for the electric vehicle market, global demand continues to grow.
See also: Global Electric Vehicle Demand Forecasted for Growth in 2025
The KraneShares Electric Vehicles and Future Mobility ETF (KARS) captures the breadth of the electric vehicle ecosystem. The fund takes not just a global approach to EV exposure, but also invests along the entirety of the value chain. KARS currently trades above both its 50-day SMA and its 200-day SMA, trending in buy territory. The fund is also up 4.77% YTD as of March 10, 2025 according to Y-Charts data.
KARS measures the performance of the Bloomberg Electric Vehicles Index, which tracks the industry holistically. This includes exposure to electric vehicle manufacturers, electric vehicle components, and batteries. It also includes hydrogen fuel cells and the raw materials used in the synthesis of producing parts for EVs.
The fund invests in major EV car manufacturers such as BYD, Li Auto, and Tesla. It also goes a step beyond and invests in the companies that contribute to the EV value chain. These include Samsung, Panasonic, and Albemarle, a major lithium manufacturer.
KARS carries an expense ratio of 0.72%.
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