With myself currently being in the market for a new automobile, it seems appropriate to cover the only “Automotive” sector focused ETF in the U.S. listed landscape, CARZ (First Trust Global Auto, Expense Ratio 0.70%).
For we all know that shopping for a new automobile can be a fun process, amid the bargaining and price checking, and visits to multiple locations to secure just the right deal. Specific to CARZ, the fund debuted in May of 2011, having recently celebrated its four year anniversary live, but is rather small in terms of AUM with $34.2 million at the moment.
There is a heavy international focus evident when peeling back the wrapper and looking at individual portfolio holdings, with 69% of the portfolio dedicated to overseas markets. We see Japan weighing in the heaviest from a single country standpoint with a 36% weighting, followed by a 24% weighting to the U.S., and lesser weightings to other countries in order as the following:
Germany 11%, China 7%, South Korea 7%, France 6%, with token weightings to other countries whom participate in the Automotive manufacturing sector.
Top single equity weightings in CARZ are GM (8.46%), Honda Motor Company Ltd. (8.12%), Toyota Motor Corp (8.05%), Daimler AG (7.55%), and F (7.26%). For those looking for TSLA, it ranks as the sixth largest weighted component within this index. Fund literature states that this index is “a modified market-capitalization weighted index” for those whom may be curious about how the components are selected and weighted for investment purposes.
As my “car shopping” continues throughout the balance of this summer, it will make sense for us to keep CARZ on our radar especially given the recent challenges the fund has had in failing to eclipse and hold its 50 day MA, which seems to be standing in the way as overhead resistance.