Increasing demand for electric automobiles is opening up opportunities for ETF investors to focus on the sector with funds like 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. This 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: DRIV’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 in this sub-sector.
DRIV is up 85% the past year. Its top 15 holdings include a who’s who in big tech, including Microsoft, Apple, and Google’s parent company, Alphabet.
President Biden Pushes for More Electric Vehicles
U.S. President Joe Biden is making a push for more electric vehicles as part of his clean energy agenda. This should quite literally be another driving force for the DRIV ETF.
“President Joe Biden’s push to accelerate the nation’s transition toward electric vehicles offers him a game-changing opportunity to jolt the climate change debate — if he can quell simmering tension between two key elements of the Democratic coalition,” a CNN article said.
“If Biden can convince auto companies and autoworkers that they will prosper in a historic transition that replaces the internal combustion engine with zero-emission electric vehicles, that could allow him to build support for aggressive actions on the climate crisis across the industrial Midwestern states such as Michigan, Wisconsin and Minnesota that remain key to the Democrats’ political fortunes,” the article added.
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