Global X Autonomous & Electric Vehicles UCITS ETF (Acc)
| Issuer: Global X ETFs |
| Asset Class: Equity |
| TER: 50bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 18 Nov 2021 |
| Ticker: DRVE |
| ISIN: IE00BMH5YR69 |
This investment vehicle provides targeted exposure to the rapidly expanding field of autonomous and electric vehicles. It invests in companies that are at the forefront of this technological revolution, encompassing the entire value chain. This includes manufacturers of electric and self-driving cars, developers of autonomous driving software and hardware such as sensors and mapping technologies, and producers of key components like electric vehicle batteries and the materials used within them, such as lithium and cobalt. By holding a diversified basket of these innovative companies, investors can gain access to the long-term growth potential of this disruptive theme without needing to pick individual winners.
The transition to electric and autonomous transportation is a structural megatrend driven by several powerful catalysts. Governments worldwide are implementing stricter emissions regulations and offering subsidies to accelerate the adoption of electric vehicles, directly benefiting the companies within this portfolio. Concurrently, advancements in artificial intelligence, sensor technology, and connectivity are making fully autonomous vehicles a tangible reality, unlocking vast new markets for mobility as a service, logistics, and personal transportation. This convergence of environmental policy, consumer demand for cleaner and safer transport, and relentless technological innovation creates a compelling, long-term investment case.
This thematic fund can serve as a satellite holding within a well-diversified portfolio, offering the potential for higher growth compared to broad market indices. It is particularly suitable for investors with a long-term horizon who are comfortable with the volatility associated with technology-focused investments. The strategy provides a pure-play on a specific and powerful industry shift, complementing core holdings in global or regional equities. By investing in this theme, one can participate in the transformation of the multi-trillion dollar automotive and transportation industries.
