Integral to the electric vehicle (EV) adoption thesis is that more charging stations become available so would-be buyers of these cars aren’t put off by concerns about running out of charges in the midst of road trips.
Fortunately, EV infrastructure is increasing and could benefit disruptive technological themes such as clean energy and smart grid technologies, which are accessible via the ALPS Disruptive Technologies ETF (CBOE: DTEC).
DTEC tracks the Indxx Disruptive Technologies Index, which identifies companies using disruptive technologies across ten thematic areas, including Healthcare Innovation, Internet of Things, Clean Energy and Smart Grid, Cloud Computing, Data and Analytics, FinTech, Robotics, and Artificial Intelligence, Cybersecurity, 3D Printing, and Mobile Payments.
“The number of publicly accessible charging points for electric vehicles (EV) jumped 60% in 2019, the biggest increase in three years and outpacing sales of battery-powered cars, according to the International Energy Agency (IEA),” reports Reuters.
Defining Clean Energy, Smart Grid
Within DTEC, clean energy and smart grid technologies are grouped together as one of the ETF’s 10 themes.
“Energy/electricity generated by power stations using clean or renewable resources such as sun, wind, waves, and water. These energy sources release a minimal amount of greenhouse gases such as carbon dioxide and methane,” according to ALPs.
A smart grid is applicable to the EV infrastructure boom.
“Smart Grid consists of controls, computers, automation, and new technologies and equipment working together, but in this case, these technologies will work with the electrical grid to respond digitally to quickly changing electric demand brought on by increased variability due to solar and wind power. The Smart Grid represents an unprecedented opportunity to move the energy industry into a new era of reliability, availability, and efficiency that will contribute to our economic and environmental health,” according to ALPs.
With EV expected to continue grabbing larger slices of the global automobile market, it’s vital that buyers of the vehicles have access to charging outside of their homes or offices.
“The increase reflects efforts to build critical infrastructure ahead of an expected boom in EV sales, which accounted for just 1% of global car stock last year, according to the IEA,” reports Reuters. “While most EV charging takes place at home or at work, the rollout of public infrastructure is key to convincing prospective buyers that there is no risk of them getting stranded on an empty battery.”
Other funds to consider include the Robo Global Healthcare Technology and Innovation ETF (HTEC), 3D Printing ETF (CBOE: PRNT) and the iShares US Medical Devices ETF (IHI).
For more on cornerstone strategies, visit our ETF Building Blocks Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
