Currently, no automotive exchange traded fund (ETF) exists. Maybe it’s because Asia has dominated the industry for years. Maybe the U.S. automotive factories that were shut down because of budget cuts is a factor. Who knows for sure? But some recent good news for the auto industry could change that.
General Motors (GM) reported "better-than-expected" earnings in the second quarter, according to Madlen Read for the Associated Press. The positive report helped boost GM’s stock 2.9% yesterday. In addition, GM will release two new hybrid SUVs later this year, the Tahoe and the Yukon, that will get better mileage than the Prius, according to a Marketplace segment on American Public Media.
Is this enough optimism for ETF providers to create a U.S. auto manufacturing and supply ETF? Or even a broader global automotive-based ETF?
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.