The SmartETFS Smart Transportation & Technology ETF (MOTO) is a great income option for investors interested in a greener future. Aside from being a top five fund in its class over the past year, with a 55.51% bump in returns, MOTO also boasts an ESG score that puts it in just shy of the 90th percentile among its peers. It has an annual dividend yield of 2.18%.
The focus of the fund is future technologies centered around transportation. That includes self-driving cars, electric vehicles, and even flying taxis. If a company has potential to contribute to the transportation revolution, MOTO will kick the tires on it. It is an actively managed fund consisting of 36 roughly equally weighted companies.
Tesla Inc (TSLA) is its largest holding, at 4.59%. Tesla recently jumped 2.1% after Jefferies upgraded the stock from “hold” to “buy” and predicted shares to rally 22%.
NVIDIA Corporation (NVDA) is the next largest holding in MOTO. $10,000 worth of NVIDIA shares in 2016 would be worth a quarter of a million dollars today. There’s plenty of cause to think that this growth is sustainable, as NVIDIA currently controls 80% of the discrete GPU market, which is expected to generate $54 billion in annual revenue by 2025. The company has an impressive suite of cutting-edge technologies, including AI that can upscale graphics. Though gaming provides the baseline for the company, the firm has also expanded its footprint in datacenters and in automotive design, partnering with Mercedes-Benz, Audi, Hyundai, Volvo, and other companies.
Finding funds that are not underestimating the risks of climate change is only going to get more important in the future.
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