Will Electric Vehicles Put a Charge in This Global X ETF?

U.S. president Joe Biden’s push for a greener America can help lead the charge for more electric vehicles on the road, smoothing the part for the Global X Autonomous & Electric Vehicles ETF (DRIV).

“Joe Biden’s plan for a greener U.S. economy could drive gains for clean-energy ETFs owning companies engaged in a wide array of green businesses, including electric vehicles, energy storage, and smart-grid infrastructure,” a Barron’s article noted.

“Announced last week, the $2 trillion American Jobs Plan calls for $174 billion in spending to expand the electric-vehicle market, roll out incentives to install 500,000 EV chargers by 2030, electrify 20% of the nation’s yellow school buses, and replace 50,000 diesel transit vehicles,” the Barron’s article added.

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 within the sub-sector.
  • Noteworthy Performance: DRIV is up about 14% year-to-date and over 130% the past year.

DRIV Chart

A Green Tech ETF Play

Another way to play the infrastructure plan is via green technology and the Global X CleanTech ETF (CTEC). CTEC seeks to provide investment results that correspond generally to the price and yield performance of the Indxx Global CleanTech Index, which is designed to provide exposure to exchange-listed companies that are positioned to benefit from the increased adoption of technologies focused on improving the efficiency of renewable energy production and/or mitigating the adverse environmental effects of resource consumption.

“It also aims to make cities more climate-resilient by retrofitting 2 million homes and commercial buildings, while also cutting building pollution,” the article added. “Simultaneously, $180 billion is earmarked for green-tech research and development, and $100 billion for electric grid resilience, among other initiatives.”

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