The electric vehicle race is on.
Countries all over the world want millions of electric vehicles on the roads, with the International Energy Agency (IEA) estimating we could see 135 million EVs in the next 10 years.
All in an effort to reduce global emissions.
Fueling the boom even more, General Motors just announced it will boost global spending on EVs to 435 billion through 2025. The automaker will build two additional battery plants in the U.S. “We’re committed to an all-EV future,” said GM CEO Mary Barra, as quoted by Reuters. “We had a lot of conversations about a lot of things that we can do to enable EV adoption.”
The news comes just a month after Ford increased its spending to more than $30 billion by 2030. In addition, “Ford and other global automakers are racing to shift their gasoline-powered lineups to all electric power under pressure from regions like Europe and China to cut vehicle emissions. Ford rival General Motors Co has said it aspires to halt U.S. sales of gasoline-powered passenger vehicles by 2035,” as reported by CNBC.
While you can always invest in hot EV stocks, like Tesla, Nio, and Li Auto, ETFs offer a good deal of exposure at less cost, too.
Global X Autonomous & Electric Vehicles ETF (DRIV)
One of the best ways to diversify your EV portfolio is with an ETF, such as DRIV. Not only does this ETF give investors exposure to EV and autonomous stocks, such as Tesla, Qualcomm, Nio, Apple, Microsoft, and Nvidia, it does so at less cost. For example, if you were to buy 10 shares of every listed stock in this ETF, it would cost thousands of dollars. However, with this ETF you can gain exposure to those very stocks at just $28 a share.
iShares Self-Driving EV and Tech ETF (IDRV)
Another top ETF to consider is IDRV. This one also offers diversification at less cost. For $48 a share, an investor can gain exposure to stocks such as Tesla, Qualcomm, NVIDIA, Apple, General Motors, and Alphabet. Over the last few months, the ETF has jumped from $27 to $49 and could see higher highs as the EV boom continues to accelerate.
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