The current infrastructure bill stands to greatly benefit the increased use of clean energy and electric vehicles, boding well for a pair of Global X ETFs.
“The Senate’s bipartisan bill would direct almost $90B of new federal spending to clean technologies and infrastructure supportive of a transition to clean and renewable energy sources,” a Global X blog post noted.
One of those ETFs is the Global X CleanTech ETF (CTEC). At a 0.50% expense ratio, CTEC seeks to provide investment results that correspond generally to the price and yield performance of the Indxx Global CleanTech Index.
The index is designed to provide exposure to exchange-listed companies that are positioned to benefit from the increased adoption of technologies focused on improving the efficiency of renewable energy production and/or mitigating the adverse environmental effects of resource consumption. Overall, the fund gives investors exposure to:
- High Growth Potential: CTEC enables investors to access high growth potential through companies at the leading edge of a structural shift in global energy use.
- An Unconstrained Approach: The ETF’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, CTEC delivers access to dozens of companies with high exposure to the clean tech theme.
Shoring Up Electric Vehicles
A push for more electric vehicles will also benefit the Global X Autonomous & Electric Vehicles ETF (DRIV). DRIV seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (‘EVs’), and EV components and materials, which includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt.
DRIV seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Autonomous & Electric Vehicles Index. The fund offers:
- High Growth Potential: DRIV enables investors to access high growth potential through companies critical to the development of autonomous and electric vehicles – a potentially transformative economic innovation.
- An Unconstrained Approach: The fund’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging technological theme.
- ETF Efficiency: In a single trade, DRIV delivers access to dozens of companies with high exposure to the autonomous and electric vehicles theme. Having the disruptive automotive industry in an ETF wrapper also gives traders access to short-term market maneuvers within the sub-sector.
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