Data-Driven Technology in Automobiles Could Be Next Big ETF Play

For many individuals, cars are more than just means of transportation to get from A to B. Now, big data is making its way into automobiles, allowing for automakers to extrapolate the information and monetize its findings.

A pair of reports confirm the opportunity that could arise from big data in automobiles, per a Forbes report.

“The overall revenue pool from car data monetization at a global scale might add up to USD 450 – 750 billion by 2030,” the McKinsey Report said.

“The global automotive cybersecurity market size was valued at USD 1.44 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 21.4% from 2019 to 2025,” the Automotive Cyber Security Market report said.

Per the Forbes report, this growing trend “has prompted a number of data-driven companies to appear, each of which are geared towards enabling new services for the automotive industry. One such company is Viaduct, a data-driven, machine learning startup that just raised $11 million from Innovation Endeavors to enable automakers to gain insights and extract value from vehicle intelligence.”

ETF Opportunities in Big Data

All the innovation in the sector bodes well for the Global X Autonomous & Electric Vehicles ETF (NYSEArca: DRIV). DRIV seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Autonomous & Electric Vehicles Index.

DRIV provides:

  • High Growth Potential: DRIV enables investors to access high growth potential through companies critical to the development of autonomous and electric vehicles – a potentially transformative economic innovation.
  • Unconstrained Approach: DRIV’s composition transcends the classic sector, industry, and geographic classifications by tracking an emerging technological theme.
  • ETF Efficiency: In a single trade, DRIV delivers access to dozens of companies with high exposure to the autonomous and electric vehicles theme.

Another fund to get exposure to disruption via data-driven technology is Goldman Sachs Motif Data-Driven World ETF (GDAT). The fund seeks to provide investment results that closely correspond to the performance of the Motif Data-Driven World Index, which is designed to deliver exposure to companies with common equity securities listed on exchanges in certain developed markets that may benefit from the on-going rapid increase in electronically recorded data in the world and its impact on the lifecycle of data delivery and processing.

GDAT essentially provides exposure to the beneficiaries of technological innovation, regardless of sector, geography or market capitalization. They can be used individually or collectively to help investors position their portfolios for the future.

For more market trends, visit ETF Trends.