Investors now have a new way to invest in the burgeoning electric car industry. Exchange-traded-fund provider Global X Funds has launched the Global X Autonomous & Electric Vehicles ETF (DRIV), which tracks the Solactive Autonomous & Electric Vehicles Index.
The companies in the fund are involved in the development or production of electric vehicles and self-driving vehicles. They include companies creating the software for electric and self-driving cars and those that produce crucial parts like lithium batteries. Among the top five holdings are Intel Corp. (INTC) (3.16%), NVIDIA Corp. (NVDA) (3%) and Texas Instruments (TI) (3%); Tesla Inc. (TSLA) (1.2%) is not in the top 30 of the portfolio's 75 holdings, according to Global X data. (See also: Tesla Aiming to Produce 6,000 Model 3s Per Week by June 30.)
The electric car industry is getting a boost from increasingly tight regulations on gas-powered vehicles around the world. For example, Norway has proposed a ban on the sale of gas-powered cars by 2025.
EV Sales Up 51% From Last Year
Last year, about 1.7% of all vehicles sold around the world were electric vehicles, according to the International Energy Agency. More than 1 million electric vehicles were sold last year, up 51% from the year prior. Many car manufacturers believe the autonomous driving market is soon to follow.
"Electric and autonomous vehicles are poised to have one of the most profound impacts on society since the industrial revolution, affecting a wide range of sectors in ways that we've only just begun to imagine," said Jay Jacobs, director of research at Global X Funds, in a written statement. (See also: Tesla Temporarily Suspends Model 3 Production Again.)
Global X Funds has a suite of six ETFs focusing on specific niches in technology that have a combined $3.91 billion in assets under management.