Electric vehicles were once considered niche products for the ecologically conscious consumer, but have certainly moved into the mainstream in the past few years. In a recent Pew Research Center survey, 7% of U.S. adults said they have plug-in electric or hybrid vehicles, with nearly 4 in 10 saying they were very likely or somewhat likely to seriously consider an EV as their next vehicle. This electric vehicle revolution is being spearheaded by Elon Musk and his renowned company Tesla Inc. (TSLA). But there are many other ways to take advantage of this transportation megatrend. The following are seven exchange-traded products to play the electric vehicle market via ETFs.
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Global X Lithium & Battery Tech ETF (LIT)
At $4.5 billion in assets, LIT is the largest electric vehicle ETF on this list. However, it’s worth noting that its top holdings are in lithium and battery stocks rather than vehicle manufacturers. Specifically, its portfolio holds about 40 companies, with roughly 25% of assets in the top three companies alone: Charlotte-based Albemarle Corp. (ALB) and top China firms Ganfeng Lithium Co. Ltd. (GNENF) and Yunnan Energy. This focus may be disappointing to Tesla bulls, however, it’s important to note that the OTC-traded Ganfeng is very difficult to buy into directly, and Shenzhen-listed Yunnan is practically impossible to access.
There is an undeniable risk when you’re going in on commodity-based stocks like this, particularly when they are overseas producers of lithium. But if you truly believe in the EV revolution, this Global X fund gets you in on the ground floor regardless of which nameplate is on the most popular plug-in car of the moment.