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Given that I am bullish on the auto industry and interested in the electric vehicle (EV) space, I was intrigued when Global X launched its auto ETF (VROM) back in May. After the initial announcement and a quick glance at Global X's plans, particularly as it related to Tesla Motors (NASDAQ:TSLA), I let VROM drop from my radar. Given VROM's recent performance, that was probably a bad move:

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A look at VROM's holdings, current as of July 6th, tells me several things. First, the obvious. If you want broad exposure to the auto space, VROM serves the purpose an ETF should serve. It provides instant diversification. Given the global exposure, there's really no way most individual investors could replicate this portfolio on their own without driving themselves crazy. Between deciding which Pink Sheets ticker is the correct one to go with and dealing with foreign exchange fees on some of the stocks, you might make yourself poor shortly after crazy.

% of Net Assets Name Identifier Market Price($) Shares Held Market Value($)
10.23 TOYOTA MOTOR CORP-ADR (NYSE:TM) 892331307 84.27 1,956.00 164,832.12
10.16 DAIMLERCHRYSLER AG (OTCPK:DDAIF) 5529027 75.79 2,160.00 163,716.91
7.86 FORD MOTOR CO (NYSE:F) 345370860 13.96 9,074.00 126,673.04
5.36 BMW AG (OTCPK:BAMXF) 5756029 97.04 890.00 86,368.94
4.99 HYUNDAI MOTOR CO LTD (OTC:HYMLF) 6451055 231.29 348.00 80,489.80
4.89 HONDA MOTOR CO LTD -ADR (NYSE:HMC) 438128308 39.80 1,982.00 78,883.60
4.24 JOHNSON CONTROLS (NYSE:JCI) 478366107 41.99 1,626.00 68,275.74
4.16 VOLKSWAGEN (OTCPK:VLKAF) 5497102 189.45 354.00 67,065.79
3.58 HYUNDAI MOBIS 6449544 374.85 154.00 57,727.42
3.23 PORSCHE AG - PFD (OTCPK:POAHF) 7101069 80.77 645.00 52,099.49
2.69 DONGFENG MOTOR-H (OTCPK:DNFGF) B0PH5N3 2.01 21,600.00 43,353.76
2.66 MICHELIN B (OTC:MCGFF) 4588364 95.33 450.00 42,897.00
2.65 KIA MOTORS CORPORATION (OTC:KIMTF) 6490928 71.31 600.00 42,786.77
2.56 GENERAL MOTORS CO (NYSE:GM) 37045V100 31.19 1,324.00 41,295.56
2.18 ASTRA INT'L (OTCPK:PTAIF) 6291712 7.62 4,600.00 35,073.79
1.96 TATA MOTORS LTD-SPON ADR (NYSE:TTM) 876568502 23.36 1,350.00 31,536.00
1.88 NISSAN MOTORS (OTCPK:NSANY) 6642860 10.84 2,800.00 30,353.52
1.82 MAGNA INTERNATIONAL - A (NYSE:MGA) 2554475 52.67 557.02 29,339.72
1.64 CONTINENTAL 4598589 105.70 250.00 26,425.18
1.55 RENAULT (OTC:RNSDF) 4712798 58.24 429.00 24,983.97
1.37 GENUINE PARTS CO (NYSE:GPC) 372460105 57.01 386.00 22,005.86
1.36 FIAT SPA (OTCPK:FIATY) 5748521 10.95 2,000.00 21,907.11
1.30 BORG-WARNER INC (NYSE:BWA) 099724106 80.40 260.00 20,904.00
1.18 GUANGZHOU AUTO GROUP-H (OTC:GNZUF) B433995 1.23 15,400.00 19,016.74
1.13 PEUGEOT (OTCPK:PEUGY) 7103526 45.46 400.00 18,183.90
1.13 DENSO CORP (OTCPK:DNZOF) 6640381 36.33 500.00 18,164.40
1.08 AUTOLIV INC (NYSE:ALV) 052800109 77.99 224.00 17,469.76
1.06 BRIDGESTONE (OTC:BRDCF) 6132101 24.44 700.00 17,106.30
0.93 TRW AUTOMOTIVE (NYSE:TRW) 87264S106 58.35 256.00 14,937.60
0.78 VALEO (OTCPK:VLEEF) 4937579 69.90 180.00 12,581.92
0.75 BYD COMPANY (144A) (OTCPK:BYDDY) 6536651 3.35 3,600.00 12,050.42
0.74 WABCO HOLDINGS INC (NYSE:WBC) 92927K102 72.05 166.00 11,960.30
0.67 GOODYEAR TIRE & RUBBER CO (NASDAQ:GT) 382550101 17.85 602.00 10,745.70
0.66 GENTEX CORP (NASDAQ:GNTX) 371901109 30.96 344.00 10,650.24
0.63 SUZUKI MOTOR (OTCPK:SZKMF) 6865504 23.04 440.00 10,137.95
0.53 PIRELLI & CO 4689803 10.76 800.00 8,608.30
0.49 AISIN SEIKI CO LTD 6010702 39.12 200.00 7,824.47
0.48 HANKOOK TIRE CO. LTD. 6107422 42.88 180.00 7,718.51
0.42 ISUZU MOTORS LTD 6467104 4.81 1,400.00 6,731.77
0.37 NSK (NIPPON SEIKO) 6641544 9.98 600.00 5,985.17
0.37 TOYOTA INDUSTRIES CORP 6900546 33.07 180.00 5,951.79
0.37 BRILLIANCE CHINA AUTO 6181482 1.09 5,400.00 5,904.94
0.33 MITSUBISHI MOTOR 6598446 1.25 4,200.00 5,243.51
0.31 MAZDA MOTOR CORP 6900308 2.74 1,800.00 4,939.43
0.29 FUJI HEAVY INDUS 6356406 7.76 600.00 4,657.60
0.24 GEELY AUTOMOBILE HLDGS LT 6531827 0.42 9,200.00 3,865.70
0.21 DAIHATSU MOTOR 6250304 16.92 200.00 3,384.43
0.18 KOYO SEIKO (JTEKT) 6497082 14.71 200.00 2,941.90
0.17 GS YUASA CORP 6744250 6.70 400.00 2,679.85
0.14 TESLA MOTORS INC 88160R101 28.96 78.00 2,258.88
0.03 EURO EUR 1.43 375.82 537.76
0.03 INDONESIA RUPIAH IDR 0.00 4,158,400.00 487.05
0.01 CASH CASH 1.00 205.90 205.90

About a week prior to VROM's launch, First Trust Advisors introduced the First Trust NASDAQ Global Auto Index Fund. CARZ has performed similarly to VROM, pulling back from its inception price of $30.00 to a low of $28.35 in mid-June. It closed Thursday's session at $31.82.

By and large, the two funds share benefits as well as holdings. CARZ's 4.35% stake in Harley Davidson (NYSE:HOG), as of July 6th, and VROM's interest in JCI represent the most noteworthy divergences. Here's a look at CARZ's composition.

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Here's a look at each ETF's top 10 holdings:

CARZ Holdings:


Prior to these two offerings it was next to impossible to tie yourself to the fate of the auto industry with an ETF. The best you could do was find funds that weight themselves heavily toward automakers, such as consumer discretionary or consumer goods funds like Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY), SPDR S&P International Consumer Discretionary Sector ETF (NYSEARCA:IPD) and iShares Dow Jones US Consumer Goods ETF (NYSEARCA:IYK). This strategy, however, represented little more than a sloppy and imprecise way to get the job done.

Disclosure: I am long TSLA, F.

Additional disclosure: I may initiate a position in VROM or CARZ within the next 30 days.

Source: CARZ Go VROM: 2 Auto ETFs Take Off