5 Best Electric Vehicles (EV) ETFs in 2022 | Dollar Bureau

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5 Best Electric Vehicles (EV) ETFs

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best electric vehicle EV etf

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Electric vehicles are the future of transportation. They are cleaner, quieter, and more efficient than gas-powered cars. However, most people aren’t interested in buying an electric car because they don’t trust the technology behind it or they are just too expensive.

In order to get people excited about electric vehicles, we need to make sure that the technology behind them is reliable. Otherwise, there won’t be any adoption – something we desperately need given climate change.

That’s why I’ve created this list of the top electric vehicle ETFs. These funds invest in companies that develop innovative technologies for EVs.

If you’re a believer in EVs and want to get invested early, here are the 5 best EV ETFs that you can consider.

5 Best Electric Vehicle (EV) ETFs

  1. Global X Lithium Battery Tech ETF
  2. KraneShares Electric Vehicles and Future Mobility Index ETF
  3. iShares Self-Driving EV and Tech ETF
  4. SPDR S&P Kensho Smart Mobility ETF
  5. Amplify Lithium & Battery Technology ETF

 

ETF Ticker What it tracks Expense Ratio
Global X Lithium & Battery Tech ETF  LIT Solactive Global Lithium Index 0.75%
KraneShares Electric Vehicles and Future Mobility Index ETF  KARS Bloomberg Electric Vehicles Index 0.70%
iShares Self-Driving EV and Tech ETF IDRV NYSE FactSet Global Autonomous Driving and Electric Vehicle IndexTM 0.47%
SPDR S&P Kensho Smart Mobility ETF  HAIL S&P Kensho Smart Transportation Index 0.45%
Amplify Lithium & Battery Technology ETF BATT EQM Lithium & Battery Technology Index 0.59%

1. Global X Lithium & Battery Tech ETF (LIT)

Global X Lithium & Battery Tech ETF (LIT) was founded on 22nd July 2022 and is a globally diversified fund.

It seeks to offer investment results that replicate the price and yield results of the Solactive Global Lithium Index before any fee or charges.

As an investor, there are many reasons to consider staking in this ETF. For starters, the fund represents a high growth opportunity because the technology behind lithium batteries is essential to manufacturing electric vehicles or EVs, mobile devices, and renewable energy storage.

Secondly, you’ll advocate for clean technology since EVs have zero emissions, reducing greenhouse effects, and boosting air quality.

Thirdly, LIT ETF invests in multiple companies in the lithium cycle, including battery production, refinement, as well as mining.

The ETF has an expense ratio of 0.75% which is below the allowed threshold of 1% per annum.

LIT performance chart

The fund’s performance from inception to 2020 has been stable. However, there has been a steep rise in the NAV from 2020 due to the interest generated in electric vehicles.

For example, in 2021, there was a 109% surge in the number of electric vehicles sold globally to reach 6.5 million.

LIT ETF performance

Source: https://www.marketplace.org/2022/02/03/sales-of-electric-vehicles-doubled-in-2021/

Because LIT is benchmarked to the Solactive Global Lithium Index, we compared the performance against it. From the table, the performance has been consistent with the underlying Index.

Period 1 Year 3 Years 5 Years 10 Years
NAV Returns 4.70% 35.04% 20.40% 9.16%
Solactive Global Lithium Index 5.53% 32.27% 20.36% 9.56%

Source:

 

Top 10 Holdings

The fund’s top holding is Albemarle Company which specialises in the production of Lithium, allied surface treatments, bromine, and refining catalysts. Another company is Tesla which is a leading electric vehicle manufacturer.

Company Weightage
Albemarle Corporation 11.51%
Tesla 6.50%
TDK Corporation 5.72%
Sociedad Química y Minera 5.35%
BYD Company Limited 5.14%
Samsung SDI 4.93%
Panasonic Holdings 4.35%
Yunnan Energy New company 4.25%
Contemporary Amperex Technology 4.20%
Jiangxi Ganfeng Lithium 3.99%

Top 10 Sectors

The ETF has staked more in the processing, production, and electronic technology industries which are some of the major drivers of the global economy.

Sector Weightage
Process Industry 37.50%
Producer Manufacturing 20.62%
Electronic Technology 16.44%
Consumer Durables 16.10%
Non-energy Minerals 9.06%
ETF/Mutual Fund 0.26%
Cash/Derivatives 0.01%

Geographical spread

The fund’s major investors are in China and the US, where there is a high demand for electric vehicles.

Country Spread
China 29.4%
US 24.20%
Japan 10.07%
S.Korea 9.51%
Hong Kong 8.81%
Australia 8.65%
Chile 5.34%
Canada 1.89%
Germany 0.81%
Taiwan 0.72%

2. KraneShares Electric Vehicles and Future Mobility Index ETF (KARS)

The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) was founded on 18th January 2018 and seek to offer investment results that replicate the performance of the Bloomberg Electric Vehicles Index.

Additionally, the ETF invests not less than 80% of its total assets in securities in the Index. Essentially, the Index tracks the performance of the companies dealing with the production of EVs.

Another thing to note is that the ETF has managed to maintain an expense ratio of 0.70% per annum.

KARS Performance

The ETF’s performance climbed to an unprecedented high in 2021 due to an increase in electric vehicle sales.

KARS ETF performance

Source:

 

The ETF is relatively new; however, the NAV has registered an impressive performance for the three years it’s been around.

Period 1 Year 3 Years
NAV Returns -1.430% 22.915%

There are no benchmarks to compare its performance as prior to the Bloomberg Electric Vehicles Index, KARS was tracking the Solactive Electric Vehicles and Future Mobility Index.

Top 10 Holdings

The ETF’s top holding is Tesla, followed by Analog Devices Inc and NXP Semiconductors NV.

Company Weightage
Tesla 5.72%
Analog Devices 5.54%
NXP Semiconductors NV 5.17%
Mercedes-Benz Group 4.77%
Infineon Technologies 4.69%
General Motors 4.64%
Ford Motor 4.62%
Contemporary Amperex Technology Class A 4.43%
Samsung SDI 3.29%
BYD Class A 3.01%

Top 10 Sectors

Some of the top sectors the company has invested in include Consumer Durables, Electronics Technology, and Producer Manufacturing at 42.76%, 21.16%, and 17.96%, respectively.

Sector Allocation
Consumer Durables 42.76%
Electronic Technology 21.16%
Producer Manufacturing 17.96%
Process Industries 9.86%
Non-energy 7.20%
Retail Trade 0.47%
Distribution Services 0.20%
Finance 0.17%
Cash/Derivatives 0.15%
Utilities 0.08%

Geographical Spread

Even though the fund is domiciled in the US, it has a broad geographical spread to include other countries such as Hong Kong and Germany.

Country Spread
US 38.59%
Hong Kong 14.77%
Germany 12.44%
China 12.17%
S.Korea 6.36%
Australia 4.66%
Japan 4.59%
Canada 2.68%
Chile 1.45%
Belgium 1.23%

3. iShares Self-Driving EV and Tech ETF (IDRV)

The iShares Self-Driving EV and Tech ETF-IDRV seeks to track the performance of the NYSE FactSet Global Autonomous Driving and Electric Vehicle IndexTM.

Worth noting that the base index comprises securities in corporations listed in any of the 43 emerging or developed countries.

The fund invests not less than 80%of its assets in the securities that comprise the Index.

In addition, its current NAV is $43.17 to deliver a market capitalisation of $0.50306 billion. It has managed to check its costs and the expense ratio is 0.47% p.a.

Even though it’s a new ETF, it recorded a dividend distribution of 1.48% in the last 12 months.

The expense ratio for this ETF currently stands at 0.47% p.a.

IDRV Performance Chart 

IDRV ETF performance

The fund has been around for only 3 years; however, the NAV has been steadily driven by the high demand for electric vehicles in 2021. The price is expected to continue climbing as the world embraces green energy.

Period 1 Year 3 Years 5 Years 10 Years
NAV Returns 2.12% 24.03%
NYSE FactSet Global Autonomous Driving and Electric Vehicle IndexTM 2.97% 24.52%

Source: 

 

Top 10 Holdings

Despite IDRV being an Electric Vehicle ETF, the top holding is Apple Inc which deals in consumer electronics, online services, and software. However, Apple plans to venture into electric vehicle manufacturing by 2025.

As well, Intel Corp plans to manufacture electric vehicles in 2024. Other top holdings include Toyota Motor Corp and Qualcomm.

Alphabet Inc, the company behind the search giant Google, plans to manufacture self-driving vehicles that don’t require drivers to operate. The cars will use electricity and this is a timely decision for investors looking for EV ETFs.

Company Weightage
Apple 5.22%
Toyota Motor Corp 4.91%
Intel Corp 4.79%
Tesla 4.72%
Alphabet Class A 4.39%
Qualcomm 4.29%
Samsung Electronics 4.12%
Eaton Corp 3.51%
Ford Motor 3.40%
NVIDIA Corp 3.33%

Sources

 

Sector Breakdown

The top 3 sectors that the fund has invested in include; electronic technology, consumer durables, and produce manufacturing at 38.30%, 33.68%, and 18.85%, respectively.

Sector Allocation
Electronic Technology 38.30%
Consumer Durables 33.68%
Produce Manufacturing 18.85%
Technology Services 4.32%
Process Industries 3.82%
Non-energy Minerals 0.76%
Cost and Derivatives 0.20%
Distribution Services 0.04%
Commercial Services 0.02%
Health Technology 0.02%

Geographical Spread

The US forms the bulk of the region where the fund has invested at 53.62%, followed by Japan and Germany at 10.70% and 10.29%, respectively.

Country Spread
US 53.62%
Japan 10.70%
Germany 10.29%
S.Korea 7.60%
Hong Kong 5.15%
Switzerland 3.33%
Sweden 3.07%
France 1.67%
Taiwan 1.43%
Canada 1.14%

4. SPDR S&P Kensho Smart Mobility ETF (HAIL)

The SPDR S&P KenshoSmart Mobility ETF (HAIL) seeks to offer investment results that replicate the performance of the S&P Kensho Smart Transportation Index. Essentially, it invests in not less than 80% of its assets in component securities in the Index.

It was founded on 18 December 2017, and with a NAV of $41.66, the fund has a market capitalisation of $0.10184 billion.

The expense ratio for HAIL is 0.45% which is one of the lowest in our selection.

HAIL Performance Chart

Looking at the chart below, the fund has been growing since its inception, and like most electric vehicle ETFs, the surge is the greatest in 2021 due to an increase in demand for electric-powered vehicles.

HAIL ETF performance

The NAV returns are only available for 3 years.

Period 1 Year 3 Years
NAV Returns -22.36% 21.07%
S&P Kensho Smart Transportation Index -22.59% 20.58%

Source

 

Top 10 Holdings

Avis Budget Group Inc is the largest holding for this fund. Although it’s a rental car company, it plans to add electric cars to its fleet.

Company Weighting
Avis Budget Group 2.26%
Allison Transmission Holdings 2.10%
Qualcomm 1.95%
Meritor 1.92%
Blade Air Mobility Class A 1.88%
Textron 1.84%
Honda Motor ADR 1.83%
Visteon Corp 1.81%
Cummins 1.81%
Tesla 1.69%

Sector Allocation

The top sectors the fund has invested in include; Produce Manufacturing, Electronic Technology, and Consumer Durables at 28.72%, 28.42%, and 24.69%.

Sector Allocation
Produce Manufacturing 28.72%
Electronic Technology 28.46%
Consumer Durables 24.69%
Technology Services 5.15%
Finance 3.62%
Transportation 3.47%
Non-energy Minerals 1.98%
Communication Services 1.87%
Consumer Services 1.12%
Process Industries 0.78%

Geographical Spread

The fund is domiciled in the US, and unlike most ETFs in this list, the bulk of the investments are companies in the US.

Country Spread
US 81.81%
Hong Kong 5.08%
Japan 3.58%
Canada 1.78%
UK 1.39%
Netherlands 1.37%
India 1.14%
France 1.08%
Italy 1.08%
China 0.91%

Source:

 

5. Amplify Lithium & Battery Technology ETF (BATT)

The Amplify Lithium & Battery Technology ETF (BATT) seeks investment results that replicate the performance of the EQM Lithium & Battery Technology Index. The fund invests not less than 80% of its assets in component securities in the base index.

The fund was founded on 6th June 2018 and is a globally-diversified ETF, In addition, BATT has a NAV of 15.10 and a market capitalisation of $0.1982 billion.

The fund is a portfolio of firms that generate a huge income from the production or application of lithium-battery technology.

Additionally, the fund pays dividends and currently, the distribution yield stands at 2.83% over a trailing 12-month. As an investor, you may choose to reinvest the dividends and grow your stake.

BATT Performance Chart

BATT ETF performance

Period 1 Year 3 Years
NAV Returns 16.23% 13.49%
EQM Lithium & Battery Technology Index 16.69%

Source

 

Top 10 Holdings

The BHP Group Ltd ADR tops the list for the fund’s holding. As a global resources company, it deals with the production of iron, copper, uranium, and other metals. It believes in a world with low emissions, and that’s why it produces Nickel which is a vital element for the manufacture of EV batteries.

Company Weighting
BHP Group ADR 8.37%
Tesla 7.57%
Contemporary Amperex Technology Class A 5.08%
BYD Co Class H 4.75%
Glencore 4.46%
Samsung SDI 2.09%
Sociedad Quimica Y Minera De Chile SA ADR 1.92%
LG Chem 1.85%
Albemarle Corp 1.70%
Yunnan Energy New Material Class A 1.67%

Sector Allocation

Non-energy minerals, consumer durables, and produce manufacturing are some of the top sectors the ETF has invested in.

Sector Allocation
Non-energy Minerals 29.04%
Consumer Durables 22.53%
Produce Manufacturing 16.09%
Process Industries 14.03%
Electronic Technology 8.44%
Utilities 4.66%
Retail Trade 2.07%
Technology Services 1.05%
Consumer Services 0.55%
Cash and Derivatives 0.55%

Geographical Spread

The major investments are found in the US, Australia, and China – making it one of the most geographically diversified ETF in this list.

Country Spread
US 27.95%
Australia 16.12%
China 13.32%
Hong Kong 11.24%
S.Korea 6.98%
Japan 5.59%
Canada 5.17%
UK 4.69%
Chile 1.81%
Indonesia 1.72%

Conclusion

We hope you’ve found our selection of the best electric vehicle ETFs helpful in your research!

Whether you’re ESG investing or not, EV is the future as many governments (including Singapore!) are pushing for 100% adoption of electric vehicles.

Thus, it’s worth considering adding EV companies or companies that produce the necessary materials to your portfolios.

Interested in getting these ETFs?

Our preferred broker is moomoo due to their low fees and attractive sign-up bonuses.

Otherwise, feel free to check out our list of the best brokerages in Singapore for you to consider.

if you’re new to investing and need help, you might want to consider getting a financial advisor to help you with investing instead.

You save time needed for research and continuous management, all while growing your savings.

We partner with MAS-licenced financial advisors to help you with this.

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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