The Global X Autonomous & Electric Vehicles ETF (ticker: DRIV) is an exchange-traded fund designed to provide investors with exposure to companies that are driving innovation in the autonomous and electric vehicles (EV) sectors. Launched in 2018 by Global X, a leading provider of thematic ETFs, DRIV targets firms involved in the development and production of electric vehicles, autonomous driving technology, and the critical components and software that support these advancements. The ETF aims to capture the growth potential of these rapidly evolving industries, offering investors a way to benefit from the global transition towards more sustainable and technologically advanced transportation solutions.
DRIV's portfolio is diversified across various segments of the autonomous and EV ecosystem. It includes manufacturers of electric vehicles like Tesla and BYD, suppliers of key components such as batteries and semiconductors, and companies pioneering autonomous driving technologies like Alphabet's Waymo and NVIDIA. This diversification helps to mitigate risks associated with investing in a single company or sub-sector, while still providing substantial exposure to the overall theme. The ETF holds over 70 stocks, representing a broad range of industries and geographies, thus offering a comprehensive investment opportunity within the sector.
One of the key attractions of the Global X Autonomous & Electric Vehicles ETF is its alignment with long-term macroeconomic trends. The global push for reducing carbon emissions and combating climate change has accelerated the adoption of electric vehicles, supported by government policies and increasing consumer awareness. Simultaneously, advancements in artificial intelligence and machine learning are driving significant progress in autonomous driving technologies. DRIV capitalizes on these trends by investing in companies at the forefront of these technological shifts, potentially offering substantial growth as these markets expand.
DRIV employs a passive management strategy, tracking the Solactive Autonomous & Electric Vehicles Index. This index is designed to reflect the performance of companies involved in the autonomous and electric vehicle industries, based on specific criteria such as market capitalization and revenue related to the theme. By adhering to this index, DRIV ensures that its holdings remain relevant and aligned with the core theme, while also benefiting from a systematic and transparent selection process. This passive approach allows investors to gain targeted exposure to the sector without the need for active stock picking.