Best Electric Vehicle Stock ETFs to Buy NOW! | Top EV ETFs
What is up everybody. My name is colin also known as the decade investor and welcome back to my youtube channel and in this video im going to break down the growth potential of the electric vehicle market, then break down three etfs that all deal in the electric vehicle space. And finally, i will talk about the one etf that i am personally adding to my portfolio, but before we get into that, as always make sure to head down there and smash, destroy annihilate that like button and leave a comment doing those two things cost you zero Dollars but helps this channel tremendously and while youre down there, you might as well claim your 50 free limited time offer to open an account with m1 finance and some free bitcoin on block fi. Both of those links are down in the description but with that being said, lets roll the intro and dive into the video. I want to start this video by going over the growth potential for the electric vehicle market and personally, i am very bullish on the electric vehicle market. Just like i am bullish with the metaverse space. If you havent checked out that video up here at the top, where i break down what the metaverse is and why i am bullish on the metaverse, but with the ev market there is so much growth potential. It is estimated that by 2030 48, nearly half of all new cars sold will be electric vehicles, so in less than 10 years it is estimated that nearly half of every brand new car that is sold will be electric vehicles.
Now, if we look at where we are currently, we can see how much room we have to grow to reach those estimates. In 2020 alone, electric vehicles represented almost five percent of new car sales and in 2021 it is forecasted that electric vehicles will make up. Seven percent of new car sales worldwide. So, even though electric vehicle sales are increasing from 2020 to 2021, we have a long way to go to get to 2030, so really really massive growth potential for the electric vehicle market, and that is why i am personally bullish on the ev market. So with that being said, there are three electric vehicle etfs that i want to cover in this video that you could invest into if you are also bullish on the ev market, starting with the first etf on this list, which is d r. I v also known as the global x autonomous and electric vehicles etf driv, started trading in april of 2018 and carries an expense ratio of 0.68 percent. That means for every 10 000. You invest in this etf. You would pay 68 dollars in fees every single year. Driv tracks the sole active, autonomous and electric vehicle index and includes companies like tesla at three point: six: three percent of the portfolio nvidia at 3.19 of the portfolio and alphabet class, a at 3.17 percent of the portfolio; and there are 76 total holdings within this portfolio. And companies that range in industries from motor vehicles at 23.
20 of the portfolio semiconductors at sixteen point: three: zero percent and auto parts original equipment manufacturers at eleven point: five, two percent – so a really really solid industry breakdown and a really really solid diversification of these holdings. Not heavily invested into the top holdings of this portfolio if we break down this etf by country, the largest country allocation is the united states of america at 60.51, followed by japan at 8.76 percent and china at 4.72. So nearly two thirds of the country breakdown of this etf is in the united states of america. If we look at the returns of driv in the last one year, this etf is up 63.08 in the last three years. It is up 25.01, that is an average annual return and since inception, which was 2018 is up 20.62 again, average annual return so really really solid returns for drive, and it has the history of these returns since it was created in 2018 and the final thing about Driv is it does pay a distribution that is paid out, semi annually or twice a year, so that is the first etf on the list, which is the global x, autonomous and electric vehicles etf. Moving on to the second etf on this list, which is idrv also known as the ishares self driving electric vehicle and tech etf, this etf was created in april of 2019, so one year later than driv but carries a way cheaper expense ratio. At point four: seven percent, which means for every ten thousand dollars you invest into this etf.
You would pay forty seven dollars annually so a way cheaper expense ratio for id rv compared to driv this etf tracks. The new york stock exchange fact set global autonomous driving and electric vehicle index etfs that are going after the same sector. All will track different indexes, which is why we will see different holdings and different weights within similar sector etfs. The top companies within idrv include amd at 6.61 tesla at 6.6 percent in nvidia at six point five one percent. However, within this etf there are 99 holdings, so a little bit more holdings. However, with idrv, the top ten holdings make up a little bit more of the portfolio compared to driv. If we look at the country breakdown for this etf, the largest country of this portfolio is the united states of america at 54.9, followed by germany at 10.3 percent and number three is japan at 8.9, so slightly different with the country breakdown with idrv compared to driv? How has this etf done in terms of returns well in the last one year? This etf is up 44.8 and since inception, which was 2019 is up 31.01 on average and finally, just like drive idrv does pay a distribution that is paid out, semi annually or twice a year, so that is idrv notice. The subtle differences between these two etfs, even though they are electric vehicle, focused etfs, but moving on to the third last but not least, newest etf, on this list, which is fdrv fdrv, is the fidelity electric vehicle and future transportation etf.
This is a new etf, like i said it has only been around since october 2021 or when i put out this video just a little bit over a month old, so not much of a history to see with his etf, but we can still break it down To see what index it does track and that index is the fidelity electric vehicle and future transportation index. So the name of this etf is the index that it tracks. The top holdings of this portfolio include companies like tesla at 6.41, nvidia at 4.83, uber at 4.46 percent and neo at 4.01, so a little bit different in those top holdings, and there are only 56 holdings within this etf, so smaller in terms of holdings compared to The first two etfs on this list. However, if we look at the expense ratio, it is the cheapest on this list. Fdrv only has an expense ratio of 0.’ percent, which means for every 10 000. You invest in this etf. You would pay ‘ in fees. Every single year, if we break this down by sector, the largest sector for fdrv, is the semiconductor sector at 28.87, followed by auto components at 19.23 percent and the third largest is the automobile sector at 14.61. If we break this down by country, the largest country, we see the similarities between all these etfs is the united states of america at 56.42, followed, secondly, by china at 13.36 percent. When it comes to returns for fdrv, we dont have much of a history.
Like i said, the inception date was october 2021 at the time this recording that is a little bit over a month old. So if we look at that one month return, this etf is actually up 11.88, so not too shabby in that one month, but not a lot of history compared to the first two on this list drive or i d r v now in terms of distributions, it Does not have any notes of a distribution that it will make does not mean it wont make any in the future, but currently fdrv has no distributions. So those are the three etfs d r i v, i d r v and f d, r v, three electric vehicle etfs now personally, which one did i invest into, i bought i d r v. I invested a hundred dollars into this etf because i am bullish on this sector. I am bullish on electric vehicles. I am bullish on autonomous driving. I am bullish on just very much tech focused future that we see in this world. That is why i put a hundred dollars into idrv, so with that being said, i hope that this video really really helped. You understand why so many people are bullish on the ev market because of the estimates and the predictions also three electric vehicle etfs that you could look at investing and finally, which one did i buy.