Best electric vehicle ETFs to buy in 2023
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Our investment experts have researched the EV industry and selected the best ETFs to buy right now to capitalise on its continued growth. EV ETFs include automakers, lithium miners, and other companies involved in producing electric cars. Read on to learn which 5 EV ETFs are expected to outperform this year.
What are the top electric vehicle ETFs to buy?
In the table below, you will find out experts’ top ETF picks for the coming year. We’ve included their ticker symbols and names and you can buy any of them by clicking the buttons.
| # | ETF symbol | ETF name | Where to Trade |
|---|---|---|---|
| 1 | DRIV | Global X Autonomous & Electric Vehicle ETF | |
| 2 | KARS | KraneShares Electric Vehicles and Future Mobility ETF | |
| 3 | LIT | Global X Lithium & Battery Tech ETF | |
| 4 | IDRV | iShares Self-Driving EV and Tech ETF | |
| 5 | VCAR | Simplify Volt Robocar Disruption ETF |
1. Global X Autonomous & Electric Vehicle ETF (NASDAQ:DRIV)
The Global X Autonomous & Electric Vehicles ETF is a top-rated ETF that offers comprehensive exposure to all aspects of the electric vehicle industry. This ETF gives investors access to companies involved in developing and manufacturing EV components, technology, and manufacturers. DRIV has a total of $1 billion in assets under management.
The ETF provides a diversified portfolio of 75 holdings, with each of these capped at around 4% of the overall portfolio. This makes sure it has a well-balanced portfolio with equal weightings.
Some of the key holdings include tech giants such as Google, Intel, and Microsoft, as well as top electric vehicle manufacturers such as Tesla and Toyota. Global X Autonomous & Electric Vehicles ETF is a good option for investors wanting exposure to the best EV stocks without being too invested in a single company.
2. KraneShares Electric Vehicles and Future Mobility ETF (NYSEARCA: KARS)
The KraneShares Electric Vehicles and Future Mobility ETF is a good option for those looking to invest in companies across the globe that are involved in the production, development, and sale of EVs, as well as those that are providing critical technologies. KARS has a diversified portfolio of companies, including automobile manufacturers, lithium-ion battery producers, and technology companies.
Some of the top holdings of KARS include Tesla, Panasonic Corporation, and NIO. However, its holdings are not equally weighted, meaning that some companies make up a larger portion of the fund than others. However, the ETF is designed to provide a well-diversified portfolio that offers exposure to a range of companies in the EV space.
It is passively managed, meaning it tracks a benchmark index rather than actively managed by a portfolio manager. KARS also provides exposure to companies across the globe, including those in China, the United States, and Europe, which helps to diversify the portfolio further and reduce risk.
3. Global X Lithium & Battery Tech ETF (NYSEARCA: LIT)
Lithium is a vital component of the production of electric vehicles. Without it, these clean and efficient modes of transportation would not be possible. The Global X Lithium & Battery Tech ETF invests in companies in the lithium industry. From mining to refining to battery production, LIT covers the entire spectrum of the lithium cycle.
With a focus on global companies, particularly in China and the United States, LIT offers easy access to some of the world’s best lithium businesses. Its top holdings include Tesla and Albemarle, both of which are involved in electric vehicle technology and lithium production, making LIT a top performer in recent years. The fund has seen a 250% increase since 2020.
Investing in LIT is a good choice for those looking to capitalise on the growing need for lithium and the growth of electric vehicles. By participating in the entire lithium cycle, LIT provides a unique opportunity to invest in the future of clean transportation.
4. iShares Self-Driving EV and Tech ETF (NYSEARCA:IDRV)
iShares Self-Driving EV and Tech ETF offer investors a comprehensive approach to the electric vehicle industry. It has a diverse portfolio of nearly 120 companies from across the world. Its diverse holdings ensure that investors have access to every aspect of the EV sector, from electric power management to electrification specialists.
Some of the top holdings of IDRV include Irish power management firm Eaton Corp. PLC and Swiss electrification company ABB Ltd. These leading companies demonstrate the broad and global nature of this iShares fund, which provides investors with exposure to a wider range of EV players beyond just the usual suspects in the U.S. or China.
Investing in IDRV provides an opportunity to invest in the growing demand for EVs and the associated technologies. By investing in IDRV, individuals can take advantage of this trend and benefit from the long-term growth potential of the EV sector.
5. Simplify Volt Robocar Disruption ETF (NYSEARCA: VCAR)
The Simplify Volt Robocar Disruption ETF gives exposure to the electric vehicle and autonomous vehicle industries. This ETF includes a range of companies involved in developing and producing EVs, AVs, and related technologies.
VCAR holds a selected portfolio of companies that are leading these markets, including Tesla, NIO, and Baidu. Its holdings are not equally weighted, meaning that some companies make up a larger portion of the fund than others. VCAR uses a rules-based methodology to determine its holdings.
The ETF includes companies from around the world, including the United States, China, and Europe, providing investors with a well-rounded view of the EV and AV industries. This diverse portfolio helps to reduce the risk of investing in a single country or region, as the performance of one market does not heavily influence the overall performance of the ETF.
Where to buy the best EV ETFs
You must first register with an online broker to buy shares in the best electric vehicle ETFs. In the table below, our experts have selected some of the top ETF brokers around. Simply click the links below to register in just a few minutes.
What is an electric vehicle ETF?
An electric vehicle exchange traded fund is a type of investment fund that invests in stocks related to the electric vehicle industry. ETFs, offer investors the ability to gain exposure to a wide range of electric vehicle related stocks, allowing them to diversify their portfolios and benefit from the industry’s growth.
Electric vehicle ETFs do not just focus on manufacturers but include various companies involved in all parts of the industry, including battery manufacturers, semiconductor companies, and more.
Are EV ETFs a good investment?
Electric vehicle exchange traded funds give investors a unique opportunity to invest in a rapidly growing industry. EV ETFs provide exposure to a wide range of stocks that make up the EV sector, including manufacturers, suppliers, and related companies. The EV industry is expected to grow exponentially, creating plenty of opportunities for investors.
Electric vehicle ETFs are a good option because they invest in several EV companies, reducing risk. They also offer investors exposure to companies that are at the forefront of the rapidly expanding EV industry and can provide the opportunity to invest in a disruptive and potentially highly profitable sector with a relatively low initial investment.
As the world shifts towards cleaner energy and governments push for more electric cars on the roads, investing in an EV ETF now may pay off in the long run. Whatever you decide, it’s a good idea to keep up to date with the latest news and analysis, which you can do on any of the links below.
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