Honda (NYSE: HMC), Toyota (NYSE: TM) and Nissan combine for 21.3% of the CARZ lineup. The ETF is also significantly levered to the weakening euro with a weight of almost 21% to Germany. Export-driven Germany, the Eurozone’s largest economy, has been highlighted as a prime beneficiary of the euro’s slide. Daimler, BMW, Volkswagen and Porsche Automobil are all top 10 holdings in CARZ. [Hedged Germany ETFs Love ECB QE]
“After and explosive 37% year in 2013, CARZ was rather stagnant in 2014, barely changed on the year. Following the brief broader market correction in October of 2014, CARZ has since rallied 18% and is vast approaching the all-time high level from summer of 2014. The ETF has been trading in a narrow consolidation range between $36-41. The all-time high of $41.36 is a significant resistance level ahead, but it could be pedal to the medal with a meaningful breakout above that,” said Tom Psarofagis of Agd Capital Management in a post published earlier this week.
First Trust NASDAQ Global Auto Index Fund
ETF Trends editorial team contributed to this article.