Two Charging Electric Vehicle ETFs (Exchange-Traded Funds) Higher

This year, electric vehicle stocks have stayed in the fast lane, speeding more than 100 percent beyond S&P 500 returns as the drive towards more sustainable transport gains momentum. Moreover, tighter fuel emission requirements, improved tax-based subsidies for Electric Vehicle buyers, and the implementation of more charging points for vehicles under a friendly new Biden administration can only speed up the organization’s support.

In October, global electric vehicle sales grew 127 percent from one year ago, their fastest rise in 8 years, as per InsideEVs. Also, the Swiss investment bank UBS forecasts that by 2030 the Electric Vehicle market shares will hit 40 percent. Here, we look more closely at two unique exchange-traded funds (ETFs) that use technical analysis to track this fascinating industry and find potential entry points. The Global X Autonomous & Electric Vehicles ETF (DRIV), introduced in April 2018, intends to offer a similar return to the Solactive Autonomous & Electric Vehicles Index, an index containing global stocks participating in autonomous as well as EV technology growth, production, or support.

Unexpectedly, Tesla, Corporation (TSLA), together with other popular EV manufacturers NIO Limited (NIO) as well as Toyota Motor Corporation (TM), also from the top 10 holdings, controls the top investment weighting around 4.32 percent. On an overall 0.27 percent spread, the fund hands over a respectable dollar amount of about $5 million many days. DRIV has net assets worth $134.8 million since December 21, 2020, yielding a respectable 0.55%, and it has earned 57.45% a year until to date. The shares have soared 11.28 percent over the last month only. DRIV has been trending significantly higher after crashing under $10 per share only at the peak of the disease outbreak selloff.

Active traders will want to prepare for a retracement entrance to about the $20.30 rate after a very steep advance. The market finds a combination of aid from the pre-November 16 difference and the simple moving average of 50 days (SMA). A broader pullback to the $18 region could be sought by more conservative sellers, where the finance could find support around the swing highs of September and October.

The iShares Self-Driving EV and Tech ETF (IDRV) aims to measure the success of the Global Autonomous Driving and Electric Vehicle Index of NYSEA FactSet, which consists of the self-driving Electric Vehicle stocks. Tesla also remains in the investment driver’s seat now, taking up almost 10 percent of the company’s overall assets. Amusingly, two major corporations, Apple Inc. (AAPL) as well as QUALCOMM Incorporated (QCOM), each with ties to autonomous driving EVs, earn allocations of about 4 percent.

Trading wise, reasonable nickel spreads help investors quickly enter as well as exit positions with fairly minimal slippage, combined with a regular daily dollar turnover rate of $2.62 million. IDRV controls assets under the management (AUM) of $92.2 million as of December 21, 2020, has a dividend of 0.88 percent, and is trading 7.75 percent higher over the last month. The ETF has returned 54 percent year-to-date.