Two major trends have been driving markets for the past few years: the electrification of transportation, and the quest for clean energy. These two inter-related movements have brought electric vehicles into the limelight, and mass adoption of electric cars is happening right now around the world, especially in the U.S., China, and Europe. But how can investors capture these nascent industries’ potential, especially as the world focuses on ways to combat the negative effects of climate change?
In the upcoming webcast, Electric Vehicles and Getting Beyond Tesla, Anthony Sassine, senior investment strategist at KraneShares, will highlight the growth opportunity of electric vehicles and the new transportation technology ecosystem, along with targeted investment strategies to help financial advisors enhance their clients’ portfolios.
For example, the KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) tries to reflect the performance of the Bloomberg Electric Vehicles Index, which tracks companies engaged in the production of electric vehicles and/or their components. The index includes issuers engaged in the electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses.
KARS offers access to global companies that operate in all areas of new transportation methods, passenger and freight, including electric vehicles, autonomous vehicles, and shared mobility, along with exposure to companies that lead the development of vehicle connectivity like the Internet of Vehicles (IoV) and intelligent mobility.
Furthermore, KARS includes exposure to the potential growth brought on by increased demand for lithium-ion batteries and non-ferrous metals like lithium due to electric vehicle adoption.
Looking ahead, 58% of new car sales and 31% of the global car fleet are projected to be electric by 2040, bolstering the case for the electric vehicle industry. The global electric vehicle market is projected to command $2.7 trillion of total investment before 2040. In addition, autonomous vehicles and the resulting ”passenger economy” are projected to create $8 trillion of value in the global economy.
Financial advisors who are interested in learning more about the electric vehicles space can register for the Monday, January 24 webcast here.