Global X, an exchange traded fund provider known more for its targeted investment themes, has rolled out an autonomous and electric car strategy to help investors capitalize on the new direction in the automobile industry.
On Tuesday, Global X launched the Global X Autonomous & Electric Vehicles ETF (NasdaqGM: DRIV), which has a 0.68% expense ratio.
“Electric and autonomous vehicles are poised to have one of the most profound impacts on society since the industrial revolution, affecting a wide range of sectors in ways that we’ve only just begun to imagine,” Jay Jacobs, director of research at Global X Funds, said in a note. “In bringing DRIV to market, we’re excited to deliver access to revolutionary shifts in transportation that are at the early stages of their disruptive potential. And we’re equally excited to watch how these technologies will change our daily lives.”
Electric vehicles are in the early innings of development and there are signs that there is a lot of pent up demand among consumers whom want to embrace the technology. In 2017, electric vehicle sales represented 1.7% of all vehicle sales globally, exceeding 1 million for the first time and rising 51% year-over-year. The rate could continue to accelerate as a result of EVs becoming more economical than gas-powered cars and as a result of a pro-climate regulatory changes pushing to ban gas-powered cars.