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Top Electric Vehicle (EV) ETFs to Consider in 2022

profileJoel Koh

We have seen rapidly increasing adoption of Electric Vehicles (E.V.s) worldwide and E.V.s emerging as practical transport solutions in recent times. Arguably, this dare I say, the E.V. revolution has been pushed on by the efforts of Tesla (NASDAQ: TSLA) and other automakers.

Not to mention the worsening climate crisis, which has seen governments worldwide trying to reduce our reliance on fossil fuels and has sped up the transition to E.V.s.

For example, Germany plans to accommodate 10 million E.V.s by 2030. By 2030, the Chinese Government is targetting that 40% of all vehicles sold in China will be electric.

Closer to home, the Singapore Government aims to phase out Internal Combustion Engine (ICEvehicles and have all vehicles run on cleaner energy by 2040.

And according to leading market research firm Mordor Intelligence’s Electric Vehicle Market — Growth Trends, COVID-19 Impact And Forecast (2022 -2027) report.

Source: Mordor Intelligence

Mordor reported that ‘the electric vehicle market was valued at US$370.86 billion in 2021, and it is expected to reach US$1,298.32 billion by 2027, growing at a compound annual growth rate (CAGR) of 23.35% over the forecast period (2022-2027).

Factors such as the increasing cost of fuel and the government initiatives across different geographies to increase awareness about E.V.s are expected to promote the usage of electric vehicles over the forecast period. Infrastructure for charging stations continues to expand. Countries like China continue to lead the passenger vehicles and urban buses market due to a well-established supply chain for batteries and Traction Motors.

The Asia-Pacific region is expected to witness the fastest growth, followed by Europe and North America. The automotive industry in countries such as China, India, Japan, and South Korea is inclined toward innovation, technology, and advanced electric vehicle development. The increasing demand for reducing carbon emissions and developing more advanced and fast-charging stations is expected to propel the growth of electric vehicles during the forecast period.’

If you are interested in investing in the fast-growing E.V. sector, this list of Exchange Traded Fund (ETFs) might interest you.

Here’s all you need to know!


TL;DR: Top Electric Vehicle EV ETFs 2022

ETFTotal Expense Ratio (p.a.)Returns Since Inception (Average Annualised)Fund's Net Assets
Global X Autonomous & Electric Vehicles (NASDA: DRIV)0.68%18.29% (4 Mar 2018)US$1.19B
iShares Self-driving EV & Tech (NYSEARCA: IDRV)0.47%25.94% (16 Apr 2019)US$516M
KraneShares Electric Vehicles and Future Mobility (NYSE: KARS)0.18%15.57% (18 Jan 2018)US$272.4M
Global X Lithium & Battery Tech ETF (NYSEARCA: LIT)0.75%9.77% (22 Jul 2010)US$4.58B
Nikko AM MSCI China EVs & Future Mobility (SGX: EVS)0.70%33.0%* (31 May 2018)US$30.15M

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any investment product.


Important Terms to Know

Before we begin, there are some essential terms you need to know.

Beta

According to Global X, “Beta measures the volatility of a fund’s price relative to the volatility in the market index and can also be defined as the percentage change in the price of the fund given a 1% change in the market index. A beta below one suggests that the fund was less volatile than the market benchmark.’

Standard Deviation

The standard deviation of a stock’s returns represents the Chinese concept of “risk” well. Standard deviation measures the deviation of a stock’s returns from its expected returns.

In this case, if a stock performs well in the market above its expected or historical mean, the standard deviation of the stock increases.

Hence, investors have a greater opportunity to benefit from the above-expected results.

Of course, “danger” also lies in the sense that the stock’s performance can be much worse than what is expected.

1. Global X Autonomous & Electric Vehicles ETF (NASDAQ: DRIV) ETF

First up, we have the Global X Autonomous & Electric Vehicles ETF (DRIV) ETF. This passively managed ETF tracks the Solactive Autonomous & Electric Vehicles Index with trades on the NASDAQ under the ticker symbol DRIV.

Here is the key information about this ETF (via Global X):

  • Inception Date: 4 March 2018
  • Underlying Index: Solactive Autonomous & Electric Vehicles Index
  • Management: Passively managed
  • Number of Holdings: 75
  • Assets Under Management: US$1,503.7M (S$2,024.7M)
  • Total Expense Ratio: 0.68% p.a. (For every $10,000 invested, you will pay $68 in fees every year.)
  • Dividend Distribution Frequency: Semi-Annual.
  • ETF’s Prices As of 13 March 2022: US$24.81.

This ETF is a thematic ETF that invests in companies that build and sell E.V.s, produce critical E.V. materials like lithium and cobalt, and produce components like lithium batteries

Not to mention the companies that develop autonomous vehicle software and hardware.

As such, this ETF grants you more direct exposure to the E.V. sector.

DRIV ETF Holdings

This ETF’s top ten holdings include:

Source: Global X

DRIV ETF Sectors

In terms of diversification, the ETF grants investors global exposure across multiple sectors and industries:

Source: Global X

DRIV ETF Performance

In terms of historical performance, the ETF has done quite decently:

Source: Global X

The ETF has a total return of 65.40% since inception (4 March 2018) but has fallen -20.51% YTD due to soaring inflation and other geopolitical events like the U.S. Federal Reserve’s plan to increase interest rates and Putin’s Russia’s invading Ukraine

Additional Thoughts

This ETF is a rather solid pick as it is well diversified across sectors and industries. The top ten holdings of this ETF are also quite well balanced out, with no one company dominating the ETF excessively.

However, the ETF is still quite U.S. centric as nearly two-thirds of the ETFs companies are based in the U.S. The ETF is also quite thinly traded as it has a 30-day median bid-ask spread of 0.11% and a relatively high expense ratio of 0.68%.

2. iShares Self-driving EV & Tech ETF (NYSEARCA: IDRV) ETF

Next up, we have the iShares Self-Driving EV and Tech ETF.

According to iShare, “the iShares Self-Driving EV and Tech ETF seeks to track the investment results of an index composed of developed and emerging market companies that may benefit from growth and innovation in and around electric vehicles, battery technologies and autonomous driving technologies.”

Here is the key information about this ETF:

  • Inception Date: 16 April 2019
  • Underlying Index: NYSE® FactSet Global Autonomous Driving and Electric Vehicle Index
  • Management: Passively managed
  • Number of Holdings: 121
  • Assets Under Management: US$516.0M
  • Total Expense Ratio: 0.47% p.a. (For every $10,000 invested, you will pay $47 in fees every year.)
  • Dividend Distribution Frequency: Semi-Annual
  • 30 Day Median Bid/Ask Spread: 0.15%
  • ETF’s Price as of 13 March 2022: US$41.91.

With this ETF, you will be investing in companies at the cutting edge of self-driving and electric vehicle (E.V.) innovation.

The ETF will also grant you exposure to global companies along the entire value chain of self-driving and E.V. industries across sectors and geographies.

IDRV ETF Holdings

This ETF’s top ten holdings include:

Source: iShares

The IDRV ETF’s top five holdings are similar to DRIV with Apple, Toyota Motor Corp. (T.M.), Qualcomm, Intel and Alphabet. However, IDRV is more concentrated, allocating higher weightage to the top ten holdings.

IDRV ETF Sectors

In terms of diversification, the ETF grants investors global exposure across multiple sectors and industries:

Source: iShare

IDRV ETF Performance

Also, here is the annualised performance of the ETF:

Source: iShares

However, the ETF is up 61.69% since its inception (16 April 2019) but has fallen -24.38% YTD due to soaring inflation and other geopolitical events like the U.S. Federal Reserve’s plan to increase interest rates and Putin’s Russia’s invading Ukraine. 

Additional Thoughts

All things considered, DRIV and IDRIV are somewhat similar.

But, one of the main differences between the ETFs is the expense ratio, as IDRV’s expense ratio is 0.47% compared to DRIV’s 0.68%.

3. KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) ETF

Alternatively, you might want to consider the KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) ETF.

Here is the key information about the ETF:

  • Inception Date: 18 January 2018
  • Underlying Index: Bloomberg Electric Vehicles Index
  • Management: Passively manged
  • Number of Holdings: 77
  • Assets Under Management: US$272.42M
  • Total Expense Ratio: 0.70% p.a. (For every $10,000 invested, you will pay $70 in fees every year.)
  • Dividend Distribution Frequency: Annual
  • ETF’s Price as of 13 March 2022: US$35.43.

According to KraneShares, ‘KARS is benchmarked to the Bloomberg Electric Vehicles Index, which provides exposure to companies engaged in producing electric vehicles and/or their components. The index includes issuers engaged in the electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead-acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses.’

In other words, the ETF attempts to track the entire E.V. industry from lithium mining to battery and vehicle production.

Investing in this ETF grants you exposure to:

  • ‘Global companies that operate in all areas of new transportation methods, passenger and freight, including electric vehicles, autonomous vehicles and shared mobility
  • Exposure to companies that lead the development of vehicle connectivity like the Internet of Vehicles (IoV) and Intelligent mobility
  • Exposure to the potential growth brought on by increased demand for lithium-ion batteries and non-ferrous metals like lithium due to electric vehicle adoption
  • Access to equities listed in Mainland China, which is currently the world’s largest electric vehicle market.

KARS ETF Holdings

These are the ETFs top ten holdings:

Source: KraneShares

The ETF’s top holdings include Contemporary Amperex Technology which primarily produces lithium-ion batteries. They’re also quite a few legacy automakers like Ford, General Motors and Mercedes Benz.

KARS ETF Sectors

Source: KraneShares

KARS ETF Performance

Also, here is information about the ETF’s performance:

Source: KraneShares

The ETF has a total return of 40.48% since inception (18 January 2018) but has fallen -25.88% YTD due to soaring inflation and other geopolitical events like the U.S. Federal Reserve’s plan to increase interest rates and Putin’s Russia’s invading Ukraine. 

Additional Thoughts

All things considered, KARS is the ETF to consider if you want more exposure to China’s E.V. sector.

4. Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) ETF

Next up, we have the Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) ETF.

This ETF is not a direct play on the whole E.V. sector. Instead, it grants investors exposure to the complete lithium cycle from mining and refining the metal through battery production.

This commodity is absolutely vital to the E.V. industry as almost all E.V.s use lithium to make their batteries.

Not to mention that the ETF tracks the performance, before fees and expenses, of the Solactive Global Lithium Index.

Here is the key information about the ETF:

  • Inception Date: 22 July 2010
  • Underlying Index: Solactive Global Lithium Index.
  • Management: Passively managed
  • Number of Holdings: 41
  • Assets Under Management: US$4.58 billion
  • Total Expense Ratio: 0.75% p.a. (For every $10,000 invested, you will pay $75 in fees every year.)
  • Dividend Distribution Frequency: Semi-Annual
  • ETF’s Price as of 13 March 2022: US$68.89.

LIT ETF Holdings

Here are the ETF’s top ten holdings:

Source: Global X

LIT ETF Sectors

In terms of diversification, LIT is more concentrated as the Materials Sector makes up close to half of the ETF.

The ETF is also quite China-centric as well.

Source: Global X

LIT ETF Performance

Here’s more on the ETF’s performance. There is more data as this ETF was incepted in 2010.

Source: Global X

The ETF has a total return of 114.08% since inception (22 July 2010) but has fallen -19.83% YTD due to soaring inflation and other geopolitical events like the U.S. Federal Reserve’s plan to increase interest rates and Putin’s Russia’s invading Ukraine. 

Additional Note

Note that this ETF will be more volatile as it will be affected by the cyclical pricing of commodities.

5. Nikko AM MSCI China E.V.s & Future Mobility ETF (SGX: EVS) ETF

Last but not least, we have the Nikko AM MSCI China E.V.s & Future Mobility ETF (EVS) ETF.

Here is the key information about the ETF:

  • Inception Date: 20 January 2022
  • Underlying Index: MSCI China All Shares IMI Future Mobility Top 50 Index
  • Management: Passively managed
  • Number of Holdings: 50
  • Assets Under Management: US$30.15M
  • Total Expense Ratio: 0.70% p.a. (For every $10,000 invested, you will pay $70 in fees every year.)
  • Dividend Distribution Frequency: N.A.
  • ETF’s Price as of 13 March 2022: S$0.81.

The MSCI China Electric Vehicles & Future Mobility ETF allows investors to participate in China’s growing E.V. sector.

The ETF’s investment objective is to replicate the performance of the MSCI China All Shares IMI Future Mobility Top 50 Index.

Some of the companies part of the index include Contemporary Amperex Technology Co. Limited (CATL), NIO, and Xpeng.

The ETF will be an Excluded Investment Product (EIP).

Local investors can also use their Supplementary Retirement Scheme (SRS) to invest in the ETF instead of the default cash option.

EVS ETF Holdings

In addition, there is more information about what companies make up the index:

Source: MSCI
Source: MSCI

As you can see, the index is heavily weighted towards Chinese companies involved in the E.V. sector.

The biggest constituent is actually Contemporary Amperex Technology Co. Limited (CATL).

For the uninitiated, the 2011 founded Chinese battery manufacturer and technology company primarily manufactures lithium-ion batteries for E.V.s.

The company also produces battery management systems as well as energy storage systems.

EVS ETF Sector

In terms of diversification, the ETF grants investors diversified exposure across multiple sectors and industries but limited global exposure:

Source: MSCI

EVS ETF Performance

Next, up let’s take a look under the hood of the MSCI China All Shares IMI Future Mobility Top 50 Index, which the ETF tracks.

The MSCI China All Shares IMI Future Mobility Index can be considered a distillation of the MSCI China All Shares IMI Index — a total market index that captures large, mid and small-cap representation across China A-shares, B‐shares, H‐shares, Red‐chips, and P‐chips.

Source: MSCI

The ETF has an annualised return of 33.02% since inception (31 May 2018) but has fallen -10.55% YTD due to soaring inflation and other geopolitical events like the U.S. Federal Reserve’s plan to increase interest rates and Putin’s Russia’s invading Ukraine. 

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About Joel Koh
History student turned writer at Seedly. Before you ask, not a teacher. I hope to help people make better financial decisions and not let money control them.
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