The rise of electric vehicles (EVs) on public highways can already be seen, and autonomous vehicles (AVs) could rise in prominence as well. Fortunately, Global X has an exchange traded fund (ETF) that can allow investors to capture this growth.
A growing global population means that infrastructure is necessary to shore up transportation needs, and autonomous vehicles are ready to meet that need. That’s especially the case when it comes to public transportation in the busiest parts of the world.
“The growing need for autonomous transportation solutions has become increasingly evident in recent years,” an Investing article mentioned. “As urban populations mushroom and global supply chains struggle to keep up with rising demand, autonomously driving vehicles–from private automobiles to public buses and industrial rail systems–are increasingly being seen as a safe, reliable, and cost-effective option for optimizing transportation infrastructure.”
“Over the past decades, the rapid development of autonomously-driving vehicles and computer vision technologies coincides with a renewed focus on public infrastructure investment in the USA, Europe, APAC, and beyond,” the article added.
The article also mentioned a study by global research firm McKinsey in which the European Union (EU) is witnessing a surge in passenger and freight traffic, warranting the need for effective public transportation. Fortunately, federal governments are willing to spend on more public transportation needs, which opens the possibility of more autonomous vehicle use.
DRIVing Towards Growth
Given the tremendous growth prospects of the autonomic vehicle industry, one ETF to consider is the Global X Autonomous & Electric Vehicles ETF (DRIV). The fund also offers exposure to the burgeoning EV industry as well.
Per its fund description, DRIV seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (EVs), and EV components and materials. This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt.
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. The fund offers:
- 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.
- An unconstrained approach: DRIV’s composition transcends 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. Having the disruptive automotive industry in an ETF wrapper also gives traders access to short-term market maneuvers in this sub-sector.
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