China’s EV Market Recovers, KARS a Fund to Watch

EV manufacturers in China almost all reported rising sales in May as consumer and EV market recovery continues. As demand continues to grow, the KraneShares Electric Vehicles and Future Mobility ETF (KARS) remains well positioned to capture gains.

China is home to the largest EV market globally and all but one EV manufacturer reported year-over-year sales growth according to Electrek. BYD reported 240,220 new energy vehicles sold in May, a 124% gain YoY and a new monthly record. XPeng also reported strong sales, up 8% month-over-month in May.

Li Auto’s sales reached a new record of 28,277 in May, a gain of 10.1% month-over-month.

Nio was the only EV manufacturer to miss, though its deliveries year-to-date are still up 15.8%. Moreover, the company just launched what is likely to be its most popular model yet, the ES6 SUV.

Overall EV sales in China between April and May were up about 1% month-over-month.

The KraneShares Electric Vehicles and Future Mobility ETF (KARS) offers a good solution for investors looking to capture the potential growth of major EV producers globally. The fund takes not just a global approach to EV exposure, but also invests along the entirety of the value chain.

Graph of KARS price performance YTD as well as SMA comparisons. The fund (currently 29.90) is above its 50-day SMA of 29.36 but below its 200-day SMA of 31.34.

The ETF offers diversification for EV investors and is up 6.25% YTD and crossed above its 50-day Simple Moving Average on Friday. The fund is still below its 200-day SMA but remains one to watch.

KARS measures the performance of the Bloomberg Electric Vehicles Index, which tracks the industry holistically. This includes exposure to electric vehicle manufacturers, electric vehicle components, and batteries. It also includes hydrogen fuel cells and the raw materials utilized in the synthesis of producing parts for EVs.

KARS invests in many familiar car companies such as Tesla, Ford, and Mercedes-Benz, and major Chinese EV manufacturers such as Li Auto, Nio, and BYD. It also goes a step beyond and invests in the companies that contribute to the EV value chain. These include Samsung, Panasonic, and Albemarle, a major lithium manufacturer.

See also: “Panasonic Forecasts Record 2024 Net Profits, KARS Captures

KARS has an expense ratio of 0.70%.

For more news, information, and analysis, visit the Climate Insights Channel.