Driven by an expected surge in electric vehicle (EV) demand, smart transportation is an increasignly credible investment theme. That theme is accessible via several exchange traded funds, including the SPDR Kensho Smart Mobility ETF (NYSEArca: XKST).

XKST, which debuted in January, follows the Kensho Smart Transportation Index. That index “is designed to capture companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems,” according to State Street.

The Kensho Intelligent Structures ETF follows companies whose products and services are driving innovation behind intelligent infrastructure, such as smart building infrastructure, smart power grids, intelligent transportation infrastructure, and intelligent water infrastructure.

Inside The Smart Transportation Evolution

Market observers expect the smart transportation boom to be driven by multiple factors, including drones, electric vehicles and share mobility.

“Technical developments, shifts in regulation and public perception will dictate the progress on commercializing autonomous vehicles,” said State Street in a recent note. “Once those hurdles are overcome, McKinsey & Co. estimates, under a high-disruption scenario, partially or fully autonomous vehicles will account for 65% of passenger vehicles sold globally by 2030.”