As the exchange traded funds (ETFs) industry evolves, more and more ETFs are focusing on exciting, high-growth market segments. That includes the newly minted KraneShares Electric Vehicles & Future Mobility ETF (KARS).
The KraneShares Electric Vehicles & Future Mobility ETF, which debuted in January, is the first ETF explicitly giving investors access to the booming electric vehicle market. KARS follows the Solactive Electric Vehicles and Future Mobility Index. That benchmark provides exposure to companies producing electric vehicles as well components and parts markers.
“The Index includes issuers engaged in the electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing and/or electric infrastructure businesses,” according to KraneShares.
An often overlooked element in the success of new ETFs is the timing of the concepts being offered by those rookie funds. Data confirm that KARS fits the bill as well-timed ETF. Worldwide registrations of new electric vehicles jumped to 750,000 in 2016, according to the International Energy Agency (IEA). IEA data also indicate global electric car stock topped 2 million in 2016, doubling from 1 million in 2015.
Another element crucial to the success and viability of new ETFs is whether or not the underlying concept offers investors access to long-lasting and potentially widespread themes. Data indicate KARS does just that.
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