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This article was originally published on ETFTrends.com.
Self-driving cars will soon have the latest technology that will operate via 5G networks, which will allow them to communicate with each other. C-V2X, a communications technology using 5G network technology, will allow vehicles to communicate wirelessly in order to improve both functionality and safety.
"C-V2X will unlock the full potential of self-driving technology by adding an additional sense," said Maxime Flament, chief technology officer of the 5G Automotive Association.
Per the iShares website, the fund will provide prospective investors with:
Access to companies at the forefront of self-driving and electric vehicle (EV) innovation
Exposure to global stocks along the full value chain of self-driving and EV industries, across sectors and geographies
Seek long-term growth with access to companies that can shape the global economic future
IDRV 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. Specifically, it tracks the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index (the “Underlying Index”), which measures the performance of equity securities issued by companies that produce autonomous driving vehicles, electric vehicles, batteries for electric vehicles, or technologies related to such products.
The fund's top holdings as of April 18 include Apple, Nvidia Corp and Qualcomm Inc. IDRV's expense ratio comes in at 0.47 percent.
IDRV will invest in domestic and international markets per its prospectus, which states that, "the Underlying Index is composed of equity securities of companies listed in one of 43 developed or emerging market countries that derive a certain specified percentage of their revenue from selected autonomous or electric vehicle-related industries, as defined by IDI."
Though the technology itself might still be years away, investors can still capitalize on this nascent space that is already seeing major deals taking place. For example, remote driving startup Phantom Auto raised $13.5 million in seed capital, which will be used to expand a logistics business that will utilize sidewalks, warehouses and cargo yards where autonomy and teleoperation are already used.
The ETF launch comes as the move to disruptive technology is making its way into a number of ETF offerings that are looking to capitalize on the next wave of technology. Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion.
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