3 Electric Vehicle ETFs to Accelerate Your Profits in 2021

NYSE: LIT | Global X Lithium & Battery Tech ETF News, Ratings, and Charts

LIT – Increasing climate change concerns, lower recurring expenses, and higher efficiency are leading continued rise in demand for electric vehicles (EVs). This along with rising investments in this space has helped many EV stocks skyrocket this year. However, with sky-high valuations, it could be risky to ride the EV wave by directly investing in stocks. So, ETFs such as Global X Lithium & Battery Tech (LIT), Global X Autonomous & Electric Vehicles (DRIV) and SPDR S&P Kensho Smart Mobility (HAIL) is a good option to invest in this space, as they offer diversified exposure which reduces the risk.

As climate change becomes a major concern, governments across the globe are accelerating a shift in their economies toward carbon-neutral energy sources. Many countries have already set stringent carbon-emission norms, increasing the demand for electric vehicles (EVs). Incentives and subsidies offered by the governments for buying EVs are also adding to the demand. Moreover, people are gradually shifting to EVs for better efficiency and lower recurring costs.

While the pandemic-induced lockdown brought economic activities to a stand-still, it is expected that sale of plug-in electric light vehicles (PEV) will grow 6% to 2.3 million units in 2020. The electric vehicle battery market is expected to grow to almost 94 billion US dollars worldwide by 2026.

The electric vehicle momentum is likely to continue as Joe Biden enters the White House, as the President-elect has ambitious plans to achieve net-zero carbon emissions by 2050. Here are three ETFs well-positioned to significantly gain amid the EV revolution: Global X Lithium & Battery Tech ETF (LIT), Global X Autonomous & Electric Vehicles ETF (DRIV) and SPDR S&P Kensho Smart Mobility ETF (HAIL).

Global X Lithium & Battery Tech ETF (LIT)

Lithium is used in the battery cells that power EVs.  LIT, managed by Global X Management Company LLC, focuses on stocks of companies operating across materials, metals and mining, diversified metals and mining, diversified metal ores sectors. The Fund tracks the performance of the Solactive Global Lithium Index, by using full replication technique. The index measures broad-based equity market performance of global companies involved in the lithium industry. LIT invests at least 80% of its total assets in the securities of the index. The top 3 holdings of the ETF are Albemarle Corp (ALB), BYD Co Ltd Class H, and Ganfeng Lithium Co Ltd with weights of 12.2%, 5.4% and 5.3%, respectively.

LIT has $1.77 billion in assets under management (AUM) and an expense ratio of 0.75% compared to the category average of 0.52%. The fund pays an annual dividend of $0.44, yielding 0.81% at its current price.

The ETF has gained 118.4% year-to-date and 87.4% over the past six months.

How does LIT stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

A for Overall POWR Rating.

It is ranked #2 out of 110 ETFs in the Commodity ETFs group.

Global X Autonomous & Electric Vehicles ETF (DRIV) 

DRIV invests in public equity markets of global developed regions. It seeks to provide exposure to companies that develop electric vehicles and autonomous vehicles, the required vehicle components and materials including companies that produce autonomous driving technology and network connected services for transportation. The fund is non-diversified and tracks the performance of the Solactive Autonomous & Electric Vehicles Index, by using full replication technique. It invests at least 80% of its total assets in the securities of the index. The top 3 holdings of the ETF are Tesla Inc. (TSLA), Qualcomm Inc. (QCOM) and NIO Inc. (NIO) with weights of 4.02%, 3.05%, and 2.95%, respectively.

DRIV has an AUM of $206.1 million and an expense ratio of 0.68% compared to the category average of 0.76%. The fund pays an annual dividend of $0.12, yielding 0.51% at its current price. The ETF has an MSCI ESG Fund Rating of BBB. The ETF has gained 59.7% year-to-date and 61.7% over the past six months.

DRIV is rated “Strong Buy” in our POWR Ratings system. It also has an “A” for Trade Grade, Buy & Hold Grade, and Industry Rank. It is ranked #47 of 98 ETFs in the Technology Equities ETFs group.

SPDR S&P Kensho Smart Mobility ETF (HAIL)

HAIL is managed by SSGA Funds Management, Inc. and seeks to provide exposure in stocks of companies operating across industrials, transportation sectors. The fund is non-diversified and investment results generally correspond to the total return performance of the S&P Kensho Smart Transportation Index, which it tracks using representative sampling technique.  Under normal market conditions, the fund generally invests substantially all, but at least 80%, of its total assets in the securities whose products and services are the forefront of smart transportation innovation. The top 3 holdings of the ETF are NIO (NIO), Plug Power Inc. (PLUG), and Workhorse Group Inc. (WKHS) with weights of 12%, 7%, and 4.4%, respectively.

HAIL has an AUM of $99.2 million and an expense ratio of 0.45% compared to the category average of 0.76%. The fund pays $0.45 in dividends annually, yielding 0.96% at its current price. The ETF has an MSCI ESG Fund Rating of BBB. HAIL has gained 84% year-to-date and 79.8% over the past six months.

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

5 WINNING Stocks Chart Patterns

7 Best ETFs for the NEXT Bull Market


LIT shares were trading at $59.24 per share on Thursday afternoon, down $0.48 (-0.80%). Year-to-date, LIT has gained 117.80%, versus a 16.79% rise in the benchmark S&P 500 index during the same period.


About the Author: Rishab Dugar


Rishab is a financial journalist and investment analyst. His investment approach is to focus on quality stocks, trading at low prices, with business models that he readily understands. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
LITGet RatingGet RatingGet Rating
DRIVGet RatingGet RatingGet Rating
HAILGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

The Fallacy of the Bullish Argument

40 year investment veteran Steve Reitmeister does not buy the bullish argument that is gaining speed as the S&P 500 (SPY) closes above 4,200. In fact, he says the set up for a serious correction and thus warns investors not to get SUCKED into this rally as the rug is about to get pulled out. Discover why along with a timely trading plan in the fresh commentary below...

:  |  News, Ratings, and Charts

4 Hyper-Growth Stocks That Could Soar

Coupled with the macroeconomic headwinds, the U.S. debt default crisis and consequent recessionary fears have triggered market volatility. Against this backdrop, quality growth stocks Boston Scientific (BSX), Cardinal Health (CAH), Cidara Therapeutics (CDTX), and Geospace Technologies (GEOS) could be solid buys now. Read on…

:  |  News, Ratings, and Charts

Is Now the Time to Add Meta Platforms (META) to Your Portfolio?

Tech giant Meta Platforms (META) witnessed steady growth in its fiscal first quarter, and its dominance in the social media sphere remains unparalleled. Moreover, the stock is currently trading above its 50-day and 200-day moving averages. So, is now the time to buy the stock? Read more to find out...

:  |  News, Ratings, and Charts

3 Financial Services Stocks to Maximize Your Returns

The growing adoption of digital financial services is expected to drive the long-term growth of the financial services industry. Amid this backdrop, it could be wise to buy fundamentally strong financial services stocks Fiserv (FISV), Navient (NAVI), and Medallion Financial (MFIN). Read more…

:  |  News, Ratings, and Charts

Is Now the Time to Add Meta Platforms (META) to Your Portfolio?

Tech giant Meta Platforms (META) witnessed steady growth in its fiscal first quarter, and its dominance in the social media sphere remains unparalleled. Moreover, the stock is currently trading above its 50-day and 200-day moving averages. So, is now the time to buy the stock? Read more to find out...

Read More Stories

More Global X Lithium & Battery Tech ETF (LIT) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All LIT News