Investing in ETFs for the Driverless Car Revolution

Investors who want to invest in the driverless car revolution can now choose from several exchange-traded funds (ETFs) that are specifically dedicated to driverless cars, electric vehicles, and other innovations in the automobile industry. Some of the ETFs that are invested in driverless cars, electric vehicles, and other innovations in the automobile industry include KraneShares Electric Vehicles and Future Mobility ETF, Capital Link Global Green Energy Transport and Technology Leaders ETF, and Global X Autonomous & Electric Vehicles ETF.

Additionally, people who are interested in investing in driverless cars can add ETFs to their portfolio that concentrate on the automobile industry and related technological innovations. First Trust's S-Network Future Vehicles & Technology ETF or Autonomous Technology & Robotics ETF by ARK Invest are some ETFs that focus on the automobile industry and related technological innovations.

Basics

In the ever-evolving landscape of autonomous vehicles, investors now have a unique avenue for participation through specialized exchange-traded funds (ETFs). These funds cater specifically to the revolutionary realms of driverless cars, electric vehicles, and innovative advancements within the automobile sector.

Prominent among this niche category are the KraneShares Electric Vehicles and Future Mobility ETF (KARS), making its debut in January 2018; the Capital Link Global Green Energy Transport and Technology Leaders ETF (EKAR), which entered the market in February 2018; and the Global X Autonomous & Electric Vehicles ETF (DRIV), introduced in April 2018. Before the creation of specific ETFs for self-driving cars and electric vehicles, no investment funds were exclusively dedicated to these technologies. Surprisingly, only one ETF was designed to cover the entire automotive industry.

KraneShares Electric Vehicles and Future Mobility ETF (KARS)

As of December 2023, the KraneShares Electric Vehicles and Future Mobility ETF (KARS) boasts a substantial net asset value of $135 million and maintains a competitive 0.72% expense ratio. The fund aligns its portfolio with the Bloomberg Electric Vehicles Index, strategically investing in global enterprises engaged not only in electric vehicle production and components but also spanning domains such as autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses.

Capital Link Global Green Energy Transport and Technology Leaders ETF (EKAR)

As of December 2023, the Capital Link Global Green Energy Transport and Technology Leaders ETF (EKAR) comprises international stocks associated with electric autonomous vehicles, self-driving technology, and renewable energy/battery storage. With a net asset value of $6.54 million and a modest 0.65% expense ratio, the fund strategically allocates investments across five key sectors within the industry: battery producers, original equipment manufacturers, suppliers, semiconductors and software producers, and renewable energy producers. Anchored by the AF Global Green Energy Transport and Technology Leaders Index, EKAR presents a diversified portfolio in the evolving landscape of green transport and technology leadership.

Global X Autonomous & Electric Vehicles ETF (DRIV)

As of December 2023, the Global X Autonomous & Electric Vehicles ETF (DRIV) mirrors the Solactive Autonomous and Electric Vehicles Index. With a net asset value reaching $698 million and a competitive 0.68% expense ratio, the fund strategically invests in enterprises engaged in software and hardware development for driverless vehicles. Furthermore, DRIV allocates investments in companies at the forefront of electric vehicle production, including components such as lithium and cobalt.

Diverse ETF Choices for Autonomous and Green Investments

Explore a range of Exchange Traded Funds (ETFs) tailored to those seeking investment opportunities in driverless cars and related technological advancements within the automobile industry.

First Trust's S-Network Future Vehicles & Technology (CARZ)

Launched in 2011, CARZ was the exclusive ETF in the automobile industry until 2018. As of December 2023, it holds $42.15 million in net assets with an expense ratio of 0.70%. CARZ tracks the S-Network Electric & Future Vehicle Ecosystem Index, investing globally in companies involved in electric and autonomous vehicle manufacturing, as well as enabling technologies and materials. Key holdings include Tesla (TSLA), NVIDIA Corp (NVDA), Apple Inc (AAPL), Qualcomm Inc. (QCOM), and Microsoft Corp (MFST).

ARK Invest's Autonomous Technology & Robotics ETF (ARKQ)

Launched in 2014, ARKQ reached $977 million in net assets by December 2023, with a 0.75% expense ratio. This actively managed fund invests in autonomous technology, robotics, 3D printing, and energy storage. The three largest sectors, including industries, information technologies, and consumer discretionary, make up about 91% of the sector breakdown. Key holdings represent nearly 88% of the portfolio.

First Trust Clean Edge Green Energy Index Fund (QCLN)

Introduced in 2007, QCLN focuses on companies engaged in clean alternative energy, expanding to include electric cars. With almost $1 billion in net assets and a 0.58% expense ratio as of December 2023, QCLN tracks the NASDAQ Clean Edge Green Energy Index. Approximately one-third of the portfolio holdings involve automobiles and semiconductor firms, integral in developing driverless car technology.

Conclusion

Investors can seamlessly navigate the driverless car revolution with specialized ETFs like KraneShares Electric Vehicles and Future Mobility (KARS), Capital Link Global Green Energy Transport and Technology Leaders (EKAR), and Global X Autonomous & Electric Vehicles (DRIV). Beyond autonomous vehicles, diversification is attainable through broader options like First Trust's S-Network Future Vehicles & Technology (CARZ) and ARK Invest's Autonomous Technology & Robotics (ARKQ), offering strategic exposure to evolving automotive and technological landscapes. These curated choices align with investor interests in driving innovation and sustainability.