Large auto producers experienced double-digit sales gains in July, revving up a car industry-related exchange traded fund.
The First Trust NASDAQ Global Auto Index Fund (NYSEArca: CARZ) rose 2.7% Thursday. CARZ has gained 25.6% year-to-date.
Toyota (NYSE: TM) lead July sales with almost a 16.5% increase, followed by General Motors (NYSE: GM) at 16%, and the trio Chrysler, Nissan and Ford (NasdaqCM: F) showed 11 percent gains, according to the Associated Press. Toyota accounts for 7.8% of CARZ, General Motors is 4.6%, Daimler AG is 8.2%, Nissan is 3.6% and Ford is 8.2%.
“Solid industry sales in July point to a stable market indicating a recovering economy,” Bill Fay, Toyota’s group vice president, said in the article.
Pickup truck demand lead sales, and consumers also looked for SUVs and smaller cars.
Automobile industry analysts expect July sales to increase 15% year-over-year. Observers are optimistic that the robust performance could help support the industry through December.
“We’re almost at a pre-recession pace that looks like it may have the momentum that will carry it through the second half of the year and beyond,” Alec Gutierrez, senior market analyst for Kelley Blue Book, said in the article.
Consumers are driving up auto sales as they feel more comfortable with the low interest rate environment, improving economy, rising consumer confidence and improving home values. Additionally, rebates and low-interest loans are also supporting demand.
First Trust NASDAQ Global Auto Index Fund
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Max Chen contributed to this article.