Buoyed by electric vehicle (EV) gains, the Global X Autonomous & Electric Vehicles ETF (NASDAQ: DRIV) is higher by almost 60% year-to-date. It appears as though DRIV’s 2020 performance could be the start of something more substantial.
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 enables investors to access high growth potential through companies critical to the development of autonomous and electric vehicles – a potentially transformative economic innovation. It features broad reach into the electric vehicle (EV) ecosystem. Adding further to the case for DRIV heading into 2020 is a a recent spate of advancements that could hasten EV adoption.
“Electric vehicles may cost about the same as their gas-guzzling brethren in just three or four years — and only get cheaper from there,” reports David Baker for Bloomberg.
Electric Vehicles More Accessible than Ever Before
Due to the increased concerns over environmental issues, global governments are supporting the development of electric vehicles worldwide. Consequently, the high voltage battery market will continue to enjoy increased interest and investment as electric vehicles are drive growth.
DRIV delivers access to dozens of companies with high exposure to the autonomous and electric vehicles theme. An ETF wrapper also gives traders access to short-term market maneuvers in this sub-sector.
“Battery costs have plunged nearly 90% in the last decade, from $1,100 per kilowatt-hour in 2010 to $137 this year. Packs built for cars — as opposed to home solar arrays or pieces of the power grid — cost even less. They now average $126 per kilowatt-hour,” reports Bloomberg.
High prices for electric vehicles could be changing soon. Companies like Tesla are looking to introduce entry-level models to make them more financially accessible to consumers, which could help spur demand and boost certain ETFs.
“Electric cars and buses, which are key to fighting global warming, have long been saddled with bigger up-front costs than those burning gasoline or diesel, due to the cost of batteries. But researchers say that price premium will disappear once battery packs reach $100 per kilowatt-hour — a tipping point BNEF expects to occur in 2023, according to its 2020 Battery Price Survey,” adds Bloomberg.
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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.