The federal government is fielding pleas to reduce carbon emissions to zero by the year 2035, which should charge up assets like the Global X Autonomous & Electric Vehicles ETF (DRIV).
“Governors from a dozen states are asking President Biden to ban the sale of cars and light trucks that emit greenhouse gases by 2035,” an NPR article noted. “In a letter to the president, the governors of California, New York, North Carolina and nine other states — all but one a Democrat — asked for the change ahead of a White House climate summit, scheduled to begin Thursday.”
“By establishing a clear regulatory path to ensuring that all vehicles sold in the United States are zero-emission, we can finally clear the air and create high-road jobs,” the governors wrote in the letter.
“Moving quickly towards a zero-emission transportation future will protect the health of all communities,” they added.
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 13% year-to-date and almost 130% the past year.
Ambitious Goals for Electric Vehicle Reliance
The ambitious goals for electric vehicles will no doubt be a major tailwind for DRIV. With the backing of the federal government, momentum is squarely on the ETF’s side.
“While the letter urges a transition to entirely zero-emission vehicles by that date, it does not specifically call for the elimination of gasoline-powered vehicles,” the NPR article added. “The 2035 goal matches one already adopted by California. The other states whose governors signed have ambitious goals to increase zero-emissions vehicles, such as electric vehicles, and/or invest heavily in such technology in the coming years.”
“The letter follows similar appeals in March from 71 House lawmakers and 10 senators, all Democrats, urging Biden to reinstate Obama-era vehicle emissions standards through 2025 and do more to move the U.S. in the direction of electric vehicles.”
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