These electric vehicle ETFs are up 20% this year — and analysts still see major upside ahead
Exchange-traded funds focused on electric vehicles have become increasingly popular as interest in the industry booms. These ETFs provide a diversified way to invest in the industry, offering exposure to companies such as Tesla , semiconductor company Nvidia and global stocks such as Warren Buffett-backed Chinese automaker BYD . Given the large number of EV-related ETFs available, CNBC Pro has attempted to narrow down the list, identifying ETFs that analysts expect to rise by more than 30% over the next year. Funds in the above table have risen by over 18% on average this year, although this stellar performance comes after a slide of more than 38% in 2022. Electric Vehicle Charging Infrastructure ETF The Electric Vehicle Charging Infrastructure ETF (ELEC) by hanETF is expected to rise by 60.8% over the next year, according to the weighted average of analyst price targets of constituent stocks compiled by FactSet. The ETF, which tracks the Solactive Electric Vehicle Charging Infrastructure Index, is traded on the London Stock Exchange, Italy’s Borsa Italiana, and Germany’s Xetra and Gettex exchanges. ChargePoint , which operates the largest network of electric vehicle charging stations in North America and Europe, is the fund’s largest holding as of Feb. 21, according to FactSet. Analysts expect this stock alone to rise by 47% over the next year. iShares Self-driving EV & Tech ETF Analysts expect the iShares Self-driving EV & Tech ETF (IDRV) to rise 33.9% over the next 12 months. It’s already up by 20% so far this year. Despite trading on the NYSE, the fund’s holdings are globally diversified. For example, France’s Renault is the ETF’s largest holding at 4.9% of total assets. BlackRock’s iShares says the fund is focused on electric vehicles and self-driving car technology and seeks “long-term growth with access to companies that can shape the global economic future.” Other ETFs Hong Kong-listed Global X China Electric Vehicle and Battery ETF , and U.S. listed Amplify Lithium & Battery Technology ETF and Global X Lithium & Battery Tech ETF not only invest in electric vehicle manufacturers but also focus on companies related to the production of lithium batteries and earlier stages of the supply chain, such as miners and refiners. Meanwhile, the Fidelity Electric Vehicles and Future Transportation ETF charges 0.35% in fees annually, the cheapest among the funds analyzed by CNBC Pro. The ETF’s largest holding is Tesla at 4.5% of total assets. The Global X Autonomous & Electric Vehicles ETF was not included in the analysis due to a lack of price target data on FactSet.
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