The electric vehicle market seems to be gaining momentum. Outside the market leader, Tesla Nasdaq: Teslaelectric car companies post new sales records. Six Chinese electric car makers It falls into this category. This includes the country’s leaders in space, such as BYD OUTCOMETS: You’ll do it And many young Chinese players. Even American automakers love Ford Motor Company New York Stock Exchange: F Electric vehicle sales have seen an all-time high recently.
However, investing in this area requires caution. In the United States, the recent rise in electric vehicle sales is likely due to… Expected regulatory changes The Trump administration will do it. Many expect Trump to end the $7,500 tax break that makes cars more price competitive with their gas-powered counterparts. But, even if this hurts the competitiveness of American electric vehicles, forecasters still expect strong growth in electric vehicle sales in China. fastmarkets He sees growth slowing marginally From its clip of 31% in 2024. Taking into account China still represents The vast majority of vehicle sales are electricthis industry can move forward. Below, I’ll detail three ETFs that may be able to benefit.
FDRV: EV ETF with significant exposure to China
Fidelity Electric Vehicles and Future Transportation ETF today
Fidelity Foundation for Electric Vehicles and Future Transportation
As of 01/10/2025
- Dividend yield
- 0.30%
- Assets under management
- $27.99 million
The first is the Fidelity Future Electric Vehicle and Transportation ETF Bats: FDRV. As of November 30, 2024, the company’s largest holding is Tesla. It represents 6% of the portfolio. Following the story of electric cars in China, Tesla also saw its sales in China reach a record high in 2024. They increased by almost 9% and make up nearly 37% of the company’s total car sales. The ETF also includes China’s largest player, BYD, which makes up nearly 4% of the portfolio. Several small Chinese companies are also included.
The only other US-based automaker in the portfolio is Rivian Nasdaq: Raven. The company recently posted higher-than-expected production numbers, sending its shares higher. At least for now, the company has kept its promise to fix the production issues. The rest of the portfolio consists largely of electric vehicle suppliers in the semiconductor industry, as well as ride-sharing companies. The fund’s expense ratio of 0.4% makes it a relatively inexpensive way to gain targeted exposure to a portfolio of companies in the electric vehicle market.
EVMT: Investing in the metals used inside electric vehicles
Invesco Commodity Strategy Metals & EVs No. K-1 ETF today
Invesco Metals & Electric Vehicles Commodity Strategy K-1 ETF
As of 01/10/2025 02:27 PM Eastern
- 52 week range
- $14.47
▼
$19.43
- Dividend yield
- 3.56%
- Assets under management
- $7.38 million
Invesco Metals and Electric Vehicles Commodity Strategy K-1 ETF Nasdaq: EVMT It is a little more unique. Like many capital-intensive technologies, electric vehicles use many natural resources to manufacture them. As such, this strategy invests in a variety of underlying metal commodity futures contracts. As the production and demand for electric cars increases, the demand for metals used in the automobile industry increases, leading to higher prices. Allocations to nickel, copper and aluminum futures constitute more than 78% of the portfolio.
The fund is looking to outperform the S&P GSCI Electric Vehicle Metals Index. This index looks at the percentage of each type of metal used in a typical electric vehicle to determine its portfolio weights. It updates these mineral usage ratios twice a year. Since its inception in April 2022, the fund has achieved its goal of outperforming the index by 1%. However, overall performance was terrible, down 47% as of the January 7 close. It has been hit by a decline in metal prices since its peak in March 2022. However, some see prices of major metals such as nickel… It recovers significantly in the coming years.
CARZ: Diversified across electric vehicles, big tech, and autonomous driving
First Trust S-Network for future vehicles and technology trading today
FirstTrust S-Network Future Vehicles and Technology ETF
As of 10/01/2025 at 01:42 PM ET
- 52 week range
- $50.83
▼
$63.10
- Dividend yield
- 1.15%
- Assets under management
- $32.64 million
The last is the First Trust S-Network Future Vehicles & Technology ETF (CARZ). This fund is significantly more diversified than the other two, with 100 stocks. Its largest holding is also Tesla. However, unlike FDRV, it also has significant allocations to many Magnificent Seven stocks. Larger semiconductor companies also make a key difference.
FDRV focuses its automaker holdings mostly on Chinese companies. However, CARZ is investing in electric vehicle manufacturers from many regions. This includes big players in the US, Europe, Japan, Korea, China and the UK. Aside from being just an electric vehicle fund, it also invests heavily in companies working in the autonomous driving space. It also has some exposure to lithium mining companies, as the element is important in the manufacture of electric vehicle batteries. The fund has returned 10% over the past year, largely due to its allocation to large technology companies.
Before you consider the Fidelity Electric Vehicles and Future Transportation ETF, you’ll need to hear this.
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