Will Rise in Micro-EV Fuel EV ETFs?

Micro-EVs are a fresh and game-changing trend in the electric vehicle (EV) world. They have enormous potential and are poised to revolutionize urban transportation. According to Fairfield market research, from 2023 to 2030, the global micro-EV market is anticipated to expand remarkably at a constant 12.9% annual pace. By the end of 2030, this growth trajectory is anticipated to result in a market value of around $20.8 billion.

As the EV market continues to gather steam and boasts a promising future, considering an investment in EV-focused ETFs presents a strategic opportunity to leverage the substantial market potential within this sector. Here are some EV ETFs options. Global X Autonomous & Electric Vehicles ETF DRIV, KraneShares Electric Vehicles & Future Mobility ETF KARS, SPDR S&P Kensho Smart Mobility ETF HAIL and iShares Self-Driving EV and Tech ETF IDRV.

What are Micro-EVs?

Micro-EVs are small, space-saving mini-electric cars with top speeds of 60 to 100 km/h and an average range of about 200 km, offering practical mobility solutions.

These mini-electric vehicles are tailored to accommodate one or two individuals along with their belongings. Propelled by an electric motor and powered by a compact battery pack, they are efficient and eco-friendly choices. For individuals and businesses seeking practical transportation within busy city landscapes, micro EVs present an economical, effective, and environmentally conscious alternative.

Micro-EV Market Outlook

The growth of the micro-EV market is attributed to increasing awareness of eco-friendly transportation options and the global demand for electric vehicles. Micro-EV provide a sustainable and eco-friendly way of transportation, contributing to a decrease in our dependence on fossil fuels and minimizing pollution. Furthermore, favorable government regulations and tax incentives have fast-tracked their worldwide acceptance.

While there are challenges to overcome before these vehicles become widely adopted, their potential benefits indicate a promising future for advancements and expansion in the transportation sector.

ETFs in Focus

Global X Autonomous & Electric Vehicles ETF (DRIV)

The Global X Autonomous & Electric Vehicles ETF seeks to track the performance of the Solactive Autonomous & Electric Vehicles Index. The fund has a basket of 76 securities, with each security accounting for no more than 3.55% of assets. DRIV has major allocations in the United States (60.18) and Japan (11.01%).

Having gathered an asset base of $794.57 million, Global X Autonomous & Electric Vehicles ETF charges an annual fee of 0.68%.

iShares Self-Driving EV and Tech ETF (IDRV)

The iShares Self-Driving EV and Tech ETF seeks to track the results of the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index. The fund has a basket of 53 securities, with each security accounting for no more than 7.36% of assets. IDRV has an asset base of $422.72 million.

iShares Self-Driving EV and Tech ETF has major allocations in the consumer discretionary, materials and industrial sectors with a share of 61.99%, 16.10% and 14.76%, respectively. IDRV charges an annual fee of 0.47%.

KraneShares Electric Vehicles & Future Mobility ETF (KARS)

The KraneShares Electric Vehicles and Future Mobility Index ETF seeks to measure the performance of Bloomberg Electric Vehicles Index, having a basket of 62 securities, with each security accounting for no more than 4.70% of assets.

KraneShares Electric Vehicles and Future Mobility Index ETF has an asset base of $172.33 million and charges an annual fee of 0.72%. The fund has major allocations in the United States (24.82%), Hong Kong, China (18.55%) and Mainland China (13.85%).

SPDR S&P Kensho Smart Mobility ETF (HAIL)

The SPDR S&P Kensho Smart Mobility ETF seeks to track the performance of the S&P Kensho Smart Transportation Index. The fund has a basket of 82 securities, with each security accounting for no more than 4.54% of assets. HAIL has an asset base of $52.31 million.

SPDR S&P Kensho Smart Mobility ETF has major allocations to automobile manufacturers (22.2%) and automotive parts & equipment (14%), with 77.26% its assets invested in the United States. The fund charges an annual fee of 0.45%.
Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports

KraneShares Electric Vehicles and Future Mobility Index ETF (KARS): ETF Research Reports