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EVXX ETF Alert: What to Know as a New EV Stocks Fund Starts Trading


  • Defiance ETFs just launched a new electric vehicle (EV) exchange-traded fund (ETF), the Defiance Pure Electric Vehicle ETF (EVXX).
  • The thematic ETF focuses exclusively on EV makers positioned for high growth in future years, including Tesla (TSLA), Rivian (RIVN) and others.
  • EV stocks are nearly all in the green today, perhaps off the back of Defiance’s latest major ETF launch.
Photo of steel blue electric car being charged with wind silos and blue sky in the background. EV
Source: shutterstock.com/Alexander Steamaze

There’s a new electric vehicle (EV) exchange-traded fund (ETF) grabbing the eyes of investors everywhere: the Defiance Pure Electric Vehicle ETF (NYSEMKT:EVXX).

What do you need to know about the latest electric-powered EV fund?

Well, on Monday night, well-known ETF operator Defiance ETFs announced the launch of the Defiance Pure Electric Vehicle ETF. EVXX’s intent is to provide investors exposure to the largest, fastest-growing EV makers without being slogged down by unrelated tech companies or unproven startups.

As EV adoption is estimated to grow 35% in 2023, after last year’s gangbusters EV sales, it’s no surprise to see fund managers show a newfound interest in funds directly focused on the high-growth industry.

According to Sylvia Jablonski, CEO of Defiance ETFs, the launch of EVXX hits a particular sweet spot in demand:

“We continue to hear from investors that there is demand for a pure EV ETF, which captures this emerging megatrend without diluting the purity of the product with traditional semiconductor and auto stocks, which have little or no EV sales. Defiance is thrilled to be bringing EVXX to market to fill that void.”

What Does the EVXX ETF Offer Investors?

EVXX is an actively managed ETF with an expense ratio of 0.68%. The fund is extremely targeted toward the biggest, fastest-growing EV makers, including Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), Rivian (NASDAQ:RIVN), Li Auto (NASDAQ:LI) and XPeng (NYSE:XPEV).

According to auto analysts, EVXX represents a leaner dive into EVs than other ETFs typically offer. Todd Rosenbluth, Head of Research at VettaFi, noted the following:

“Advisors have consistently dedicated a single-digit percentage of their client assets to thematic ETFs like electric vehicles […] Many funds are so diversified that you cannot get targeted exposure. That is what makes the launch so compelling.”

It may be a coincidence, but EV makers seem to be enjoying an EVXX-fueled surge today. Indeed, all of the aforementioned EV makers are in the green right now. Highlights like Rivian enjoyed a nearly 9% jump today, alongside Nio’s nearly 6% gains and Tesla’s more than 3% bump.

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

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Article printed from InvestorPlace Media, https://investorplace.com/2023/06/evxx-etf-alert-what-to-know-as-a-new-ev-stocks-fund-starts-trading/.

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