The electric vehicle market attracted considerable hype and attention coming into this new decade. Electric vehicle are no longer a niche product offered by a handful of producers. All the top automobile manufacturers have moved to enter this space to take advantage of the growing market.
Market researcher Allied Market Research recently estimated that the global electric vehicle (EV) market was worth US$163 billion in 2020. The report projected that this market will reach US$823 billion by 2030. That would represent a compound annual growth rate (CAGR) of 18% over the forecast period that stretches from 2021 through to 2030.
Investors who are hungry for broad exposure to the electric vehicle market should look to the Global X Autonomous and Electric Vehicles ETF (NASDAQ:DRIV). This exchange-traded fund (ETF) seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles, and EV components and materials. That includes companies that develop components like lithium batteries and those that help in the production of key materials like lithium and cobalt.
Shares of this ETF have dropped 14% year-over-year as of close on February 27. However, the stock has jumped 17% so far in 2023. Investors should be very familiar with some of the big names that make up the heaviest weighted equities in this fund. The top five heaviest weighted stocks are Tesla, Nvidia, Apple, Qualcomm, and Alphabet.
I’m still looking to snatch up this EV ETF considering the potential of this market as we look to the rest of this decade.
