Electric car ETFs
Investors seeking portfolio exposure to the electric car market who don’t want to select individual stocks can buy shares in exchange-traded funds (ETFs). There are plenty of options when it comes to electric vehicle ETFs, including some that specialize in clean energy, which are often popular with ESG investors.
Fidelity Electric Vehicles and Future Transportation ETF (FDRV -2.65%) is a fairly small but focused choice and includes many of the stocks noted above. It also includes companies like Uber (UBER -2.02%), ON Semiconductor (ON -3.69%), and ChargePoint (CHPT -4.47%), adding to the diversification of the offering while remaining true to EV-enabling technologies. Chinese battery maker CATL is the fund’s largest holding.
The Invesco WilderHill Clean Energy ETF (PBW -5.07%), which tracks the performance of the WilderHill Clean Energy Index, invests broadly in clean energy. Although it includes a variety of renewable energy stocks, the ETF holds shares of plenty of electric car makers. The stocks of NIO, Tesla, and Rivian are all held by WilderHill. The fund also owns shares of lithium-ion battery maker Albemarle (ALB -5.70%) and Plug Power.
The Global X Autonomous & Electric Vehicles ETF (DRIV -3.28%) invests in makers of electric and self-driving cars. But the fund mainly focuses on traditional automakers making forays into this space, such as Toyota (TM -0.09%), and large tech companies, including semiconductor powerhouse Nvidia (NVDA -0.72%) and Alphabet (GOOG -0.02%L) (GOOG -0.02%), which is developing autonomous vehicles.
