3 Low-Cost EV ETFs to Buy for Solid Diversification


  • Here are three safe ways investors can gain exposure to surging EV demand.
  • Amplify Lithium & Battery Technology ETF (BATT): Excellent low-cost exposure to companies in the battery and lithium sectors.
  • Global X Autonomous & Electric Vehicles ETF (DRIV): A wide range of EV stocks, as well as companies with AI exposure.
  • KraneShares Electric Vehicles and Future Mobility ETF (KARS): One of the broader options for investors seeking diversification in this space.
EV stocks - 3 Low-Cost EV ETFs to Buy for Solid Diversification

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We’re all well aware of the electric vehicle boom. We know about most of the top EV stocks all over the world.  And we know global leaders want millions of them on the roads to combat climate issues. We also know major automakers are racing to add more EV models to their fleets.

Of course, in order to make this happen, automakers will require more batteries and components that go into batteries, such as lithium. Plus, there’s so much demand for EVs, some U.S. states are temporarily pausing EV incentives that were designed to promote adoption, according to Electrek.

“According to data from Cox Automotive, total US auto sales fell 8% year-over-year (YoY) from 2021, but EV sales climbed 65%, passing 800,000 in volume for the first time. The trend is not slowing this year either. The latest data shows EV sales broke another record in Q1, surpassing 250,000 and claiming over 7% of total US auto sales,” added Electrek.

So, where should smart investors park their cash? There are your usual EV stocks, like Tesla (NASDAQ:TSLA), that provide exposure to this trend. But for investors looking for a slice of this entire pie, with greater diversification at a relatively low cost, these are some of the top EV ETFs to consider right now.

Amplify Lithium & Battery Technology ETF (BATT)

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Those seeking low-cost diversification need to look no further. One of the top ETFs in the EV space I’ve had my eye on for some time is the Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT).

With an expense ratio of roughly 0.6%, the BATT ETF provides exposure to global companies deriving material revenue from developing, producing and using lithium battery technology. Some of its top holdings include Tesla, Albemarle (NYSE:ALB), Sociedad Quimica (NYSE:SQM), and Panasonic (OTCMKTS:PCRFY).

Global X Autonomous & Electric Vehicles ETF (DRIV)

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There are also ETFs that provide exposure to both the electrification trend, as well as the growth of artificial intelligence. One such ETF I think is worth considering for investors looking to amplify their growth upside is the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV).

Notably, the DRIV ETF tracks an index that uses AI to select global stocks involved in the development, production, or supporting technology of autonomous and electronic vehicles. For those bullish on the AI trend, that’s an intriguing proposition right there.

This ETF does carry a slightly higher expense ratio of 0.68%, but some of its top holdings include Tesla, Nio (NYSE:NIO), Qualcomm (NASDAQ:QCOM), Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD), and Toyota (NYSE:TM).

KraneShares Electric Vehicles and Future Mobility ETF (KARS)

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The KraneShares Electric Vehicles and Future Mobility ETF (NYSEARCA:KARS) is another ETF with the potential to accelerate higher as well. Like the other names on this list, the KARS ETF provides exposure to companies involved in the production of EVs and their components. However, I would consider this ETF among the more diversified options in this sector, a fact that’s reflected in the fund’s 0.7% expense ratio, the highest on this list.

It’s benchmarked to the Bloomberg Electric Vehicles Index, according to KraneShares.com. Some of its top holdings include Albemarle (NYSE:ALB), BYD Co. (OTCMKTS:BYDDF), Tesla, Panasonic Holdings (OTCMKTS:PCRFY), Aptiv (NYSE:APTV), and Lucid Group (NASDAQ:LCID), to name a few.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/3-ev-stocks-that-could-turn-1000-into-10000-in-a-year/.

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