The value of lithium has recorded a great increase in the last few months, tech stocks have also had a notable performance. However, these events do not favor the electric vehicle producers in the short term, but the eclectic vehicle industry has long-term potential. In 2020, about 10 million electric cars were already produced and were actively used by consumers. In February 2022, Joe Biden’s administration disclosed an agenda to offer $5 billion funding for the electric vehicle charging system across the United States. This announcement is coming after Joe Biden way back in August 2021, stated that electric cars are the future car enterprise. With these events, the drop in the stocks of electric vehicles might be a result of geopolitical events which are short-term effects, not long-term effects. Another way traders can minimize loss is by investing in ETFs. This article focuses on the best Electric Driving ETFs to Invest in.
Global X Lithium & Battery TEch ETF (Ticker: LIT)
This fund does not directly track the EVs stocks. This ETF provides exposure to lithium stocks or global electric vehicles. Analysts graded LIT with four stars, the ETF generated a one-year income of 20% with $4.8 billion with assets under the management. This ETF trails the Solactive Global Lithium Index, which is made up of some largest lithium explorers and miners globally. The industries linked to this fund are influenced by the prices of the commodities, so an intensive investor should watch out for changes in the price of Lithium. The fund’s top five stocks make up about 25% of the fund. The top five holdings are Tesla Inc. (TSLA), Albemarle Corp. (ALB), Contemporary Amperex Technology Co. Ltd. (300750), TDK Corp. (TTDKY), and Yunnan Energy New Material Co. Ltd. (002812). For every $10,000 invested in LIT yearly, its expense ratio is $75 or $0.75.
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Global X Autonomous & Electric Vehicles ETF (DRIV)
Global X, DRIV is a direct investment in the Electrical Vehicle industry. This ETF is one of the oldest and biggest EV ETFs available. DRIV has a total of $1.4 billion net assets and an expense ratio of 0.68%. The fund covers the Solactive Autonomous and Electric Vehicle Index, which is made up of companies that deal in the manufacturing of EVs, Their parts, or companies that operate on the production of raw materials required in the manufacturing of EVs. The top five holdings of DRIV are Apple Inc. (AAPL), Intel Corp. (INTC), Alphabet Inc. (GOOGL), Qualcomm Inc. (QCOM), and Nvidia Corp. (NVDA). These top five companies make up 15% of the ETFs total portfolio. However, the fund seems to be having a bearish run this year. This means this is a good time to buy the dip and measure up when the ETF picks up.
This ETF was founded in April 2019, since its inception the fund has generated a total return of 81.4% as of 3rd March. The fund has total net assets of $622.48 million, it is about half the size of the previously mentioned fund DRIV. This fund trails the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index, which is made up of global autonomous vehicle and electric vehicles firms. IDRV’s top five stocks are Qualcomm, Alphabet, Toyota Motor Corp. (TM), and Intel.
This ETF was established in January 2018, the fund was given a five-star rating by analysts, which happens to be the biggest historical achievement rating a fund can acquire from any analyst. Since the fund’s inception, it has generated a total return of 70.4%. However, the fund is currently bearish by 20%, this is due to the rise of inflation and other geopolitical factors. The fund tracks the Bloomberg Electric Vehicles Index. The fund has an expense ratio of 0.70% and total net access of $336.34 million.
Amplif Lithium & Battery Technology ETF (BATT)
Amplify Lithium & Battery Technology ETF is one of the top funds sought by investors. Analysts have predicted a long-term buy for this fund. This ETF was established in June 2018, the fund has a total of $234.24 million under management. BATT has a low expense ratio of 0.59%. The fund tracks the EQM Lithium & Battery Technology Index. The fund’s top five holdings are Contemporary Amperex Technology, Glencore PLC (GLNCY), BHP Group Ltd. (BHP), Tesla, BYD Co. Ltd. (BYDDF), and Glencore PLC (GLNCY).
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