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DRIV: A Less Volatile Way To Get Electric Vehicle Exposure

Khen Elazar profile picture
Khen Elazar


  • It is becoming clear that electric vehicles are here to stay.
  • However, EV companies are very volatile and don't suit everyone.
  • I believe that DRIV is an ETF that gives great exposure with limited volatility.


One of the hottest trends in Wall Street the past several years is electric vehicles. This is not a coincidence, as this investing trend follows a real economic shift toward electric vehicles, which is happening before our eyes. We see more and more electric cars, and this is a global trend. We see it in China and Europe as well as the United States. The governments are welcoming the change, and it is here to stay.

Dividend growth investors usually don't find many electric vehicle companies that fit their portfolios. It is a new and disruptive technology, that still requires massive investment, and companies in the business either make very little money or still losing money on an annual basis, as they're investing heavily into their products. I find it very unlikely that any leading electric car company will pay dividends in the coming decade.

However, if you look for exposure to the sector, and want to look beyond the flashy names like Tesla (TSLA), and Nio (NIO), many companies pay dividends or at least grow their free cash flow in the form that allows them to pay dividends if they wanted. These companies are safer investments, and they will capitalize as well from the rise of electric cars.

The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is a good investment tool for those who are interested in a diversified exposure to the entire sector. You will get the exposure that is not limited to the car manufactures but to the entire value chain from the materials, to the car and its software. This is an ETF with dozens of stocks, many of them have other interests besides EV alone, and therefore it is less volatile.

Electric Vehicles

According to ev-volumes.com, we see very strong growth in the number

This article was written by

Khen Elazar profile picture

Analyst’s Disclosure: I am/we are long ARKQ, GOOG, MSFT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (13)

bazooooka profile picture
I've trimmed this one; heck of a run though.
It’s a nice bunch of stocks for sure but will held lower returns than holding certain individual stocks will - of course picking those stocks is the hard part so I see why people who dont spend all day researching the sector prefer and ETF. Thanks for the article.
Good food for thought article. Yes, very volatile stocks; ETFs mitigate the wide swings. I'd like to add another ETF into the mix: IRDV, by BlackRock.
Khen Elazar profile picture
@DownTheDrain Thank you for reading and commenting. I will look into it.
hawkrnc_19 profile picture
Very well written and thought out. I took my profits in DRIV and when the markets settle down I will start a position again.
Khen Elazar profile picture
@hawkrnc_19 Thank you for reading and commenting.
TopperBrad profile picture
Guess I'm in good shape for the EV play since the only tech stocks I'm long is GOOGL and MSFT. I also have two tech ETFs in SMH (semi-conductor ETF) and CIBR (cybersecurity ETF).
Khen Elazar profile picture
@topper1296 Thank you for reading and commenting. Maybe a good time to expand your exposure.
TopperBrad profile picture
I'm actually mainly an index investor and use individual stocks as just a supplement, so I have plenty of broad exposure.
ChristopherSmith profile picture
Agree, excellent article.
Khen Elazar profile picture
@ChristopherSmith Thank you for reading and commenting.
Kenny_Bunkport profile picture
Bravo. Agreed.
Khen Elazar profile picture
@Kenny2312 Thank you for reading and commenting.
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