Tesla stock is up over 300% the past year, which has led to electric gains for the Global X Autonomous & Electric Vehicles ETF (DRIV). The ETF itself is up about 11% so far in 2021.
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.
Tesla Stock Up Over 700% in 2020
Tesla stock represents the eighth top holding in DRIV, coming in at about 2.38% of its assets, as of February 26. The electric automaker definitely had a 2020 to remember.
“The EV giant breached its 50-day moving average during the week for the first time since November,” an Investor’s Business Daily article said. “But it remains well extended from a 466 buy point of a cup with handle. Tesla stock soared 743% last year.”
DRIV also has big tech names that have been driving its strong performance, such as Google, Intel, Microsoft, and Apple. A lithium shortage should also give the ETF more tailwinds through 2021, giving investors reason to cheer a little bit more.
“The $842.3 million fund provides access not just to EV makers, but also to those involved in self-driving software, lithium batteries, and materials such as lithium and cobalt,” the article said further. “Consumer discretionary accounted for the fund’s biggest sector weighting as of Jan. 31, at nearly 36% of assets. Information technology was next at about 32%, materials 16%, industrials 11% and communication services 5%.”
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