|Bid||9.88 x 900|
|Ask||14.14 x 1200|
|Day's Range||13.35 - 13.51|
|52 Week Range||11.34 - 15.09|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.68%|
Global EV sales dropped for the first time in July. But the long-term prospects look bright. Is it the time to buy the slowdown in the EV market with these ETFs?
The Global X Autonomous & Electric Vehicles ETF (DRIV) is up nearly 15% and some fundamental factors could indicate more upside is available in the fast-growing electric vehicle space. DRIV debuted just over a year ago and tracks the Solactive Autonomous & Electric Vehicles Index. Component companies include firms “involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt,” according to Global X.
The global automotive market is massive. Nearly 79 million automobiles were sold around the world last year, the same estimate holds for 2019. That's well over the average of 54.9 million annually from 2000 to 2015 and roughly double the average annual rate seen in the 1990s.Here in the U.S., driving is part of American culture and has been for more than a century. Whether or not drivers own a car made by a domestic manufacturer, there is no denying companies like Ford (NYSE:F) and General Motors (NYSE:GM) are woven into the fabric of American history.For investors who embrace exchange-traded funds (ETFs), there is an interesting scenario as it pertains to auto industry exposure. Undoubtedly, Ford, GM, Tesla (NASDAQ:TSLA) and more are important companies. They can be accurate gauges of consumer sentiment and other important economic data points, but there simply are not many auto-related ETFs on the market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell for an Economic Slowdown Despite that dearth of auto ETFs, there are a few credible offerings in this arena. Let's have a look at some potentially worthwhile auto ETFs right here. Auto ETFs: First Trust NASDAQ Global Auto Index Fund (CARZ)Expense Ratio: 0.7% per year, or $70 on a $10,000 investment.Of the two original auto ETFs, the First Trust NASDAQ Global Auto Index Fund (NASDAQ:CARZ) is the last one standing. In some ways, CARZ epitomizes why there are no other traditional auto ETFs. The fund is more than eight years old and has just over $18 million in assets under management.Home to 32 stocks, CARZ is a traditional spin on automobile investing. GM, Toyota (NYSE:TM) and Honda (NYSE:HMC) combine for about a quarter of the fund's weight. Ford is the fourth-largest holding at almost 8%.One factor keeping investors away from CARZ is the high fee. Yes, industry funds carry higher fees than traditional broad market ETFs, but 0.7% is high even for an industry or thematic ETF. Aberdeen Standard Physical Palladium Shares ETF (PALL)Source: Shutterstock Expense Ratio: 0.6%As its name implies, the Aberdeen Standard Physical Palladium Shares ETF (NYSEARCA:PALL) is not an auto ETF, it is play on physical palladium. However, there is ample relevance to automobile sales trends here, because palladium is one of the key components in making catalytic converters in American and Chinese cars, among others."Approximately 80% of palladium demand comes from the automotive industry," according to S&P Dow Jones Indices. "Its other uses include electronics, dentistry, and jewelry. As regulations on emissions have tightened, demand for palladium to be used in the catalytic converters of gasoline-powered vehicles has risen. Gasoline vehicles have also become more popular in the wake of a number well-publicized diesel emissions scandals (diesel-powered cars use platinum in their catalytic converters)."And when they say physical palladium, they mean it -- basically 100% of the portolio is in palladium bullion. * 7 Retail Stocks to Buy for the Second Half of 2019 As for performance, PALL has plenty of that. It is up more than 23% this year, or more than double the gains of competing gold ETFs. Global X Autonomous & Electric Vehicles ETF (DRIV)Expense Ratio: 0.68%The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is one of the auto ETFs that is a play on the future industry; a future that is destined to include autonomous vehicles and many more plug-in and hybrid cars. In other words, DRIV has the potential to be an exciting auto ETF while CARZ, assuming it survives, will probably be boring.CARZ member firms include companies that are "involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt," according to Global X.Importantly, data indicate electric vehicle adoption is surging."Although global auto sales slowed by over 2% during the first quarter of 2019 relative to a year prior, sales of electric vehicles soared by 57%, reaching 496,000 vehicles in quarterly sales," according to Global X research.Top holdings in the ETF include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Texas Instruments (NASDAQ:TXN). Global X Lithium & Battery Tech ETF (LIT)Expense Ratio: 0.75%Like the aforementioned PALL, the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) is not a dedicated auto ETF, but the original lithium fund is heavily levered to demand trends in the electric and hybrid vehicle markets. Plus, LIT has staying power. It has been around more than nine years and has around $515 million in assets under management, which is a solid tally for a thematic fund.While LIT is not chock full of auto stocks, Tesla is one of its top 10 holdings. But its credibility as an auto ETF comes by way of the importance of lithium in producing the batteries powering electric cars."It's important to note that an EV's price tag is primarily driven by the cost of its battery," said Global X. "Four years ago, batteries represented around 57% of the total price of a medium-sized EV. "Yet by 2030, the cost is expected to fall to just 14%, setting a trajectory that should allow EVs to reach price parity with ICE vehicles by the mid-2020s." * 10 Best Stocks for 2019: A Volatile First Half Translation: as electric vehicles become comparably priced to traditional automobiles, the former is likely to see a significant increase in demand, and that could be a boon for LIT. KraneShares Electric Vehicles & Future Mobility ETF (KARS)Expense Ratio: 0.7%The KraneShares Electric Vehicles & Future Mobility ETF (NYSEARCA:KARS) is an international auto ETF, and that is an approach that makes sense given that some of the world's largest developing economies are massive polluters, but are looking to improve that situation by embracing electric vehicles.While KARS provides robust international exposure, it is a compelling option for investors looking to get more of a tech feel from an auto ETF. The fund allocates over 44% of its weight to U.S. stocks, many of which are well-known companies, such as Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA)."55% of new car sales and 33% of the global car fleet are projected to be electric by 2040," according to KraneShares. "The global electric vehicle market is projected to command $2.7 trillion of total investment before 2040."As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 5 Automobile ETFs That Could Rev Up appeared first on InvestorPlace.
Nio (NYSE:NIO), the electric automaker dubbed the "Tesla of China" slumped almost 4% on Friday, extending a dismal run, during which Nio stock price has plunged 39% this month and nearly 60% this year.Source: Shutterstock Following Friday's close of $2.42, one share of Nio stock barely costs more than a single Powerball ticket and there is plenty of debate regarding which might be the better investment. There could be more pain ahead for Nio stock because, although Nio stock price has been plummeting, sell-side analysts have been slow to trim their price targets on the stock. * 5 Stocks to Buy for $20 or Less The average analyst price target on Nio stock is $7.64, or about triple where the shares trade now. Last month, Bank of America Merrill Lynch analysts cut their price target on Nio stock to $3, which looked like a good idea at the time. One of the reasons for that reduction was increased competition in the China market from Tesla (NASDAQ:TSLA).InvestorPlace - Stock Market News, Stock Advice & Trading Tips Ominous Signs for Nio StockTSLA is not "perfect." TSLA stock is down more than 32% this year and there is seemingly always plenty of controversy surrounding the company. That said, Tesla is far better-positioned in the global electric-vehicle market than Nio, and TSLA is probably in better shape even in China.It is not a good look for Nio stock price to be tumbling to levels that make cups of regular coffee at some establishments more expensive than Nio stock. Certainly not when the electric-vehicle market is growing."Battery-powered electric vehicles represent just 2.1 percent of global new auto sales, the equivalent of 2 million vehicles. Sales of EVs are forecast to jump to 2.7 million this year," according to Nasdaq.Nio stock serves as a reminder that when it comes to thematic investing, picking individual stocks is hard and potentially risky. Investors who have opted for broader approaches to electric-vehicle investments are being rewarded this year. For example, the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is up 10% year-to-date, making Nio stock look dreadful by comparison.The epic problem with NIO is that the company's sales are sliding while overall electric-automotive sales are expected to rise. Adding to that, NIO CEO William Li appears blase about the company's faltering sales."At NIO Inc., the Tesla Inc. wannabe from China, electric vehicle sales are plummeting, losses mounting and the stock price cratering," according to the Detroit News. "But founder and Chief Executive Officer William Li can't see what all the fuss is about."Li added that NIO will be profitable "in a few years." The Nio CEO is nothing if not ambitious; even though there are several thousand electric vehicle makers in China, Li is evaluating ways for his company to enter the U.S. market. Ambition is nice, but not at the expense of profitability and share price, two issues NIO is struggling with. The Bottom Line on Nio Stock: Not Now For NioIt is easy to be seduced by stocks with low price tags, but a name that appears to have value because of a cheap price can often be a value trap. There are quality stocks out there with single-digit prices. Nio stock is not yet a member of that group.Remember, stocks have low prices for different reasons, but few, if any of those reasons are positive, as Nio stock highlights. Just because something is cheap does not mean it is a good deal.As was noted earlier, analysts have been slow to downgrade Nio stock and lower their price targets on Nio, partly because some have been busy denigrating TSLA. They are likely to get around to slamming Nio stock, too. The stock appears to be bereft of catalysts and will likely head lower until it can deliver positive sales and profitability surprisesTodd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Nio Stock Is Basically a Lottery Ticket at This Point appeared first on InvestorPlace.
NEW YORK , June 6, 2019 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), today announced the inclusion of twenty ETFs to the TD Ameritrade ETF Market Center ...
The electric vehicle theme remains compelling to some investors, but it has not been immune from the recent shift away from riskier. Exchange-traded funds dedicated to this investment niche are usually chock full of growth and technology stocks, making the products vulnerable when market sentiment shifts to less risky fare. As is the case with many thematic ETFs, investors considering DRIV or any of the other electric vehicle funds will have to exercise some patience.
Currently, electric vehicles represent a small percentage of new automobiles sold around the world and cars on the road, but that percentage is expected to increase in a big way over the next several years. To access this quickly developing market, investors have a number of electric vehicle-specific ETF options to choose from, including the KraneShares Electric Vehicles and Future Mobility ETF (KARS) , Global X Autonomous & Electric Vehicles ETF (DRIV) and Innovation Shares NextGen Vehicles & Technology ETF (EKAR) . “The International Energy Agency's (IEA) new Global Electric Vehicles Outlook projects global EV sales to hit 22 million by 2030, under its new policies scenario, which assumes no policy changes.
This exchange-traded fund uses a proprietary algorithm to identify companies with exposure to electronic vehicles, electric vehicle components and autonomous vehicle technology, explain ETF expert Jim Woods, editor of The Deep Woods.
With the automotive industry evolving, investors are hearing more and more about autonomous and electric vehicles. Several exchange traded funds are dedicated to those themes, including the Global X Autonomous & Electric Vehicles ETF (DRIV) . DRIV debuted just over a year ago and tracks the Solactive Autonomous & Electric Vehicles Index.