Earlier this year two exchange traded fund providers launched strategies that allow investors to concentrate on the global automotive industry.
Specifically, Global X launched Global X Auto (NYSEArca: VROM) and First Trust introduced First Trust Nasdaq Global Auto (NasdaqGM: CARZ) back in May of this year.
Broadly a sub-sector of the consumer discretionary equity sector, these ETFs invest in companies that are engaged in automobile manufacturing.
VROM is based on the S-Network Global Automotive Index while CARZ tracks the Nasdaq OMX Global Auto Index.
Top current holdings of CARZ are Honda Motor, Daimler AG, Toyota Motor, Hyundai Motor, and Ford Motor while VROM owns Toyota Motor, Daimler AG, Ford Motor, BMW, and Honda Motor rounding out the top five.
So there are some weighting and index construction nuances that separate the two funds from each other and that deserve consideration when doing the due diligence necessary to isolate which fund may be the potentially correct fit.