Global X Debuts Electric Car ETF

April 17, 2018

Issuer Global X has launched the third ETF to focus on equities involved in the electric vehicle industry. The Global X Autonomous & Electric Vehicles ETF (DRIV) joins funds offered by KraneShares and Innovation Shares.

DRIV lists on the Nasdaq and comes with an expense ratio of 0.68%. That puts it between the two existing funds in terms of cost.

Methodology

DRIV’s underlying index targets companies that are involved in the development of electric and/or autonomous vehicles and their related components and technologies. Eligible companies must have at least $500 million in market capitalization and meet liquidity requirements. They are selected from 26 developed and emerging markets, according to the prospectus.                              

The index relies on artificial intelligence to score and select the top companies from three categories: 15 from electric vehicles; 30 from electric vehicle components and 30 from autonomous vehicle technology. From there, the methodology weights companies using a modified market-capitalization approach that caps the weights of individual securities. The index is reconstituted every six months, the prospectus says.

The document notes that its components are primarily selected from the industrials, information technology, materials and consumer discretionary sectors.

The Innovation Shares NextGen Vehicles & Technology ETF (EKAR) launched in February and has $2.5 million in assets under management. It charges 0.65%. Meanwhile, the KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) launched in January with an expense ratio of 0.69%. It has $27.3 million in assets.

Contact Heather Bell at [email protected]

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