Catch the EV wave: EV ETFs gear up for new flows from infrastructure bill
Exchange-traded funds focused on electric vehicles could catch some momentum from the massive infrastructure bill Congress passed on last Friday, which contains billions in new spending for the industry.
Electric-vehicle ETFs have done well this year, taking in twice the amount of investor flows than they did in 2020. But interest seems to be waning suddenly. A basket of electric car and battery funds have seen net outflows of $25.8 million in November.
- according to Bloomberg Intelligence.
That recent trend could reverse due to the infrastructure package, as it focuses on developing the EV ecosystem, according to Todd Rosenbluth, head of ETF and mutual fund research at CFRA. He's eyeing both the $Global X Autonomous & Electric Vehicles ETF (DRIV.US)$and $Ishares Self-Driving Ev And Tech Etf (IDRV.US)$.
“The funds own not just automakers like $Ford Motor (F.US)$, $Toyota Motor (TM.US)$ and $Tesla (TSLA.US)$ but also technology and communications services companies that are part of the supply chain as well materials companies making lithium.”
- Todd Rosenbluth wrote in an email.
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The EV sector got a big jolt in late October when $Hertz Global Holdings, Inc. (HTZZ.US)$ announced an order of 100,000 Tesla vehicles, which drove the Tesla's market valuation past $1 trillion. Electric truck maker $Rivian Automotive (RIVN.US)$'s valuation passed $100 billionon second day of trading. When $Tesla (TSLA.US)$ went public 11 years ago its market value was less than $2 billion, showing just how far ambitions for electric-vehicle companies have come.
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Source: Bloomberg
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Starlone : nice
101569630 : good info, EV stocks are my watch list stocks, waiting for the right time.
Koolgal : I like EV ETFs.
Nathaniel meskimen 4 : How can you send money out of my account
CClim : Good info. Personally I prefer EV ETF. More robust.
102314833 : Is this the right time to invest in EV stocks?
Jacky Tiong :
Tiggerpepper : I should create a stock portfolio with only EV vehicles
70960493 101569630 : Now.. As in today wad the right time. Biden signs the bill tomorrow aka free billions of dollars, so buy on Monday EV charger stocks on the menu
70960493 102314833 : Yes!!! Billions of dollars are being given out this year for EV Charging station stocks. And there are only a few to choose from.
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