Take a look on public highways or streets and one can easily see the growth of electric vehicles. Trucks are an important component of the transportation industry, but can electric trucks mirror the popularity of electric cars?
Per a Yale Climate Connections article, “‘electric trucks are not widespread at all,’ says consultant David Gardiner, whose firm is part of a joint initiative that’s assessing the market for electric trucks. He says there are obstacles to widespread use. Despite the falling price of batteries, electric trucks cost more upfront. And they have to be recharged often, which can be a barrier to using them for long hauls.”
“Now the good news is that 80% of trucking in the United States is less than 250 miles,” Gardiner says. “There’s a lot more trucking that happens that’s, frankly, pretty short range, which is good news for the potential for electric vehicles.”
Furthermore, Gardiner notes that “companies are eager to go electric to meet climate goals and save money on fuel.”
“You should also have lower maintenance costs because there are just simply fewer moving parts in an electric engine,” Gardiner says.
Additionally, government incentives could also help to curb costs and adding charging stations are a couple of solutions to seeing more electric trucks on the road. Given this, ETFs to watch include the Global X Autonomous & Electric Vehicles ETF (NYSEArca: DRIV).
DRIV seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Autonomous & Electric Vehicles Index. DRIV provides:
- High Growth Potential: DRIV enables investors to access high growth potential through companies critical to the development of autonomous and electric vehicles – a potentially transformative economic innovation.
- Unconstrained Approach: DRIV’s composition transcends the classic sector, industry, and geographic classifications by tracking an emerging technological theme.
- ETF Efficiency: In a single trade, DRIV delivers access to dozens of companies with high exposure to the autonomous and electric vehicles theme.
Another way to play electric vehicles is via lithium that is used for batteries that power the cars themselves. As such, ETF investors may want to check out the Global X Lithium & Battery Tech ETF (NYSEArca: LIT), which seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Lithium Index.
The fund invests at least 80% of its total assets in the securities of the underlying index and in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) based on the securities in the underlying index. The underlying index is designed to measure broad-based equity market performance of global companies involved in the lithium industry.