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Global X Autonomous & Electric Vehicles ETF: Growth About To Zoom


  • The Global X Autonomous & Electric Vehicles ETF offers investors exposure to the entire EV sector, which is about to witness boom times.
  • The ETF has appreciated about 92% in the last year and is currently hovering around $26 (as of March 4, 2021), at a time when the market is passing through a period of correction because of rising bond yields.
  • Given President Joe Biden’s EV-friendly policies and the ETF’s focus on investing mostly in domestic stocks, I am bullish on its growth prospects.
  • I do much more than just articles at The Lead-Lag Report: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

President Joe Biden had promised in his campaign speeches that his administration would restore the full tax credit for EV purchases and explore passing on direct consumer rebates to motivate car buyers to exchange their gasoline-powered cars for EVs and zero-emission cars. The President has also started to replace all 645,000 federal vehicles with US-made EVs.

EV stocks outperformed tech stocks in 2020, and judging by the news and events surrounding the sector, I reckon that EV and component makers are in for a rollicking time going forward.


Image Source: My Tweet/The Lead-Lag report

Therefore, the perception is that the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) will do exceedingly well in the future. The ETF has appreciated about 92% in the last year and is currently hovering around $26 (as of March 4, 2021), at a time when the market is passing through a period of correction because of rising bond yields.

Here is my analysis on whether DRIV is still investable at these prices.


The ETF invests in companies that manufacture EVs and their components, batteries, hardware, software, raw materials like lithium and cobalt, etc. Its current portfolio turnover ratio is low at 13.76%, which implies that it holds on to most of its stocks for the medium to long term. However, the fund’s portfolio turnover ratio was 31.26% at the time of filing its prospectus.

So, the first takeaway is that if investors are bullish about EV prospects in the long run, they should not worry about short-term corrections in DRIV’s price because current data suggest that the fund invests for the medium to long term.


Image Source: DRIV’s Website

As of March 3, 2021, about 28% of DRIV’s total assets were invested in 10 holdings, which included tech giants like Alphabet (GOOG) (

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This article was written by

Michael A. Gayed, CFA profile picture
Michael A. Gayed is portfolio manager, and author of five award-winning research papers on market anomalies and investing. He has a BS with a double major in Finance & Management from NYU Stern School of Business, and is a CFA Charterholder. Michael runs the investing group The Lead-Lag Report, focused on helping investors outperform in all market conditions. It offers a tactical, data-driven approach to investing, to achieve long-term success even in the face of uncertainty. With increasing market volatility, it's essential to understand risk-on/risk-off signals, seize high-yield opportunities, and leverage award-winning research to maximize returns. Learn More.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

This writing is for informational purposes only and Lead-Lag Publishing, LLC undertakes no obligation to update this article even if the opinions expressed change. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. It also does not offer to provide advisory or other services in any jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Lead-Lag Publishing, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (4)

Kenny_Bunkport profile picture
Most investable theme for the next decade
been brutal week for DRIV & BATT.
Thanks for the analysis, great write-up. As these are growth stocks, how does long term interest rates running up to, say, 2%, affect the NPV of its future cash flows?
ReadyToRetireNOW profile picture
Looks like a good diversified way to play this theme.
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