5 Best EV, Battery and Autonomous Driving ETFs

In this article, we discuss 5 best EV ETFs to invest in. If you want to read our detailed discussion on the EV market, head over to 10 Best EV, Battery and Autonomous Driving ETFs. 

5. Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV)

5-Year Performance as of August 4: 82.53%

Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) aims to track the price and yield performance of the Solactive Autonomous & Electric Vehicles Index. The ETF invests in companies engaged in autonomous vehicle technology, electric vehicles, EV components like lithium batteries, and essential EV materials such as lithium and cobalt. Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) was established on April 13, 2018. On August 4, 2023, the net assets of the ETF came in at $872.81 million, along with an expense ratio of 0.68%. Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is one of the best EV ETFs to buy. 

Intel Corporation (NASDAQ:INTC) is a prominent holding of Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV). Intel Corporation (NASDAQ:INTC) is a multinational company that is involved in the design, development, manufacturing, marketing, and distribution of computer-related products. On August 3, Intel Corporation (NASDAQ:INTC) declared a $0.125 per share quarterly dividend, in line with previous. The dividend is payable on September 1, to shareholders of record as of August 7. 

According to Insider Monkey’s first quarter database, Intel Corporation (NASDAQ:INTC) was part of 68 hedge fund portfolios, compared to 62 in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 17.20 million shares worth approximately $562 million. 

ClearBridge Large Cap Growth Strategy made the following comment about Intel Corporation (NASDAQ:INTC) in its Q4 2022 investor letter:

“A third approach to return generation is purchasing idiosyncratic businesses that largely control their own destiny. Intel Corporation (NASDAQ:INTC), which we purchased in the first quarter on the premise that it would develop a leading domestic foundry business, has struggled with execution missteps and product delays. We are maintaining the position to provide ongoing exposure to semiconductors.”

4. iShares Global Clean Energy ETF (NASDAQ:ICLN)

5-Year Performance as of August 4: 98.95%

iShares Global Clean Energy ETF (NASDAQ:ICLN) seeks to replicate the performance of the S&P Global Clean Energy Index, which consists of global equities from the clean energy sector. The ETF offers investors exposure to companies producing energy from renewable sources such as solar and wind. iShares Global Clean Energy ETF (NASDAQ:ICLN) was launched on June 24, 2008. As of August 4, 2023, iShares Global Clean Energy ETF (NASDAQ:ICLN) has net assets totaling $3.8 billion, and it offers an expense ratio of 0.40%. The ETF’s portfolio includes 100 stocks. 

First Solar, Inc. (NASDAQ:FSLR) is the biggest holding of the iShares Global Clean Energy ETF (NASDAQ:ICLN). First Solar, Inc. (NASDAQ:FSLR) provides photovoltaic solar energy solutions worldwide. After reporting market-beating Q2 results, First Solar, Inc. (NASDAQ:FSLR) anticipates that its net sales for the full year of 2023 will range from $3.4 billion to $3.6 billion, compared to the market consensus of $3.46 billion. Similarly, the expected earnings per share (EPS) is expected to fall between $7.00 and $8.00, while the consensus estimate stands at $7.24.

According to Insider Monkey’s first quarter database, 39 hedge funds were bullish on First Solar, Inc. (NASDAQ:FSLR), compared to 44 funds in the prior quarter. 

3. Global X Lithium & Battery Tech ETF (NYSE:LIT)

5-Year Performance as of August 4: 98.98%

The main objective of the Global X Lithium & Battery Tech ETF (NYSE:LIT) is to closely track the price and yield performance of the Solactive Global Lithium Index. The ETF focuses on investing in companies involved in the entire lithium cycle, starting from mining and refining the metal to battery production. Launched on July 22, 2010, Global X Lithium & Battery Tech ETF (NYSE:LIT) has 40 stocks in its portfolio. As of August 4, 2023, the net assets of the ETF amount to $3.18 billion, with an expense ratio of 0.75%. Global X Lithium & Battery Tech ETF (NYSE:LIT) is one of the best EV ETFs to monitor. 

Albemarle Corporation (NYSE:ALB), a global company that specializes in the development, manufacturing, and marketing of engineered specialty chemicals, is the largest holding of Global X Lithium & Battery Tech ETF (NYSE:LIT). On August 2, Albemarle Corporation (NYSE:ALB) revised its earnings forecast for the full year 2023, expecting the EPS to range from $25.00 to $29.50 per share, which is an increase from the previous guidance of $20.75 to $25.75 per share. This new estimate also exceeds the market EPS estimate of $23.05 per share. Additionally, the company now expects FY 2023 revenue to fall between $10.4 billion to $11.5 billion, compared to the previous range of $9.8 billion to $11.5 billion. This is above the Street consensus estimate of $10.1 billion in revenue.

According to Insider Monkey’s first quarter database, 41 hedge funds were bullish on Albemarle Corporation (NYSE:ALB), compared to 46 funds in the prior quarter. 

The London Company Large Cap Strategy made the following comment about Albemarle Corporation (NYSE:ALB) in its second quarter 2023 investor letter:

“Initiated: Albemarle Corporation (NYSE:ALB) – ALB is a global chemical company that develops, manufactures and markets highly-engineered specialty chemicals across a diverse range of end markets. ALB operates in three segments: Energy Storage (battery and technical grade lithium), Specialties (bromine and specialty lithium products), and Ketjen (formerly known as catalysts). Cost advantage in the Energy Storage and Specialties businesses along with high switching costs in the Ketjen division form the basis of the company’s moat. Energy Storage has become the core business as electric vehicle (EV) penetration has increased, driving growth in demand for lithium ion batteries. We expect this trend to continue, and ALB is well-positioned to capture value as the industry grows. We’re attracted to ALB’s leading industry position, cost advantages and solid margins. We initiated this position when sentiment on lithium was at a trough, which allowed us to establish a position in ALB at an attractive valuation.”

2. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID)

5-Year Performance as of August 4: 106.99%

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID) aims to replicate the price and yield performance of the Nasdaq Clean Edge Smart Grid Infrastructure Index. This index is designed to track the performance of companies that are primarily involved in fields such as electric grids, electric meters and devices, networks, energy storage and management, and enabling software used in the smart grid infrastructure sector. The ETF was created on November 16, 2009. As of August 4, 2023, First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID)’s net assets amount to $1.12 billion, along with an expense ratio of 0.58% and a portfolio consisting of 84 stocks. It is one of the best EV ETFs to monitor. 

Eaton Corporation plc (NYSE:ETN), an American-Irish multinational power management company, is the largest holding of First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID). On July 26, Eaton Corporation plc (NYSE:ETN) declared a quarterly dividend of $0.86 per share, in line with previous. The dividend is payable on August 25, to shareholders of record on August 7. 

According to Insider Monkey’s first quarter database, Eaton Corporation plc (NYSE:ETN) was part of 55 hedge fund portfolios, compared to 48 in the prior quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with a position worth $78.3 million. 

ClearBridge Large Cap Growth Strategy made the following comment about Eaton Corporation plc (NYSE:ETN) in its Q4 2022 investor letter:

“Also within the secular category, our asset-light industrials names have flexed their strength through the bear market. Eaton Corporation plc (NYSE:ETN) is positioned in the sweet spot of several secular trends: two-way electricity solutions, microgrids and charging infrastructure for electric vehicles. While the company’s housing business is susceptible to near-term weakness, we believe Eaton can grow revenues in the mid-to-high single digits for several decades as its core utility customers have the rate base to cover ongoing electric infrastructure upgrades and buildouts.”

1. First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN)

5-Year Performance as of August 4: 153.44%

First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN)’s main objective is to closely track the price and yield performance of the Nasdaq Clean Edge Green Energy Index. The ETF was founded on February 8, 2007, and currently holds 63 stocks in its portfolio. It has an expense ratio of 0.58% and net assets amounting to approximately $1.6 billion. First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN) is one of the best EV ETFs to buy. 

Enphase Energy, Inc. (NASDAQ:ENPH) is a prominent holding of First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN). The company designs, manufactures, and distributes home energy solutions for the solar photovoltaic industry worldwide. On July 27, Enphase Energy, Inc. (NASDAQ:ENPH) reported a Q2 non-GAAP EPS of $1.47, beating market estimates by $0.20. While the revenue increased 34.1% year-over-year to $711.12 million, it fell short of Wall Street consensus by $14.86 million. 

According to Insider Monkey’s first quarter database, 55 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH), compared to 63 funds in the prior quarter. Philippe Laffont’s Coatue Management is a significant position holder in the company, with 714,442 shares worth $150.2 million. 

Here is what Aristotle Atlantic Large Cap Growth Strategy had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its investor letter for the first quarter of 2023:

“Enphase Energy, Inc. (NASDAQ:ENPH) designs, develops, manufactures and sells home energy solutions in the U.S. and internationally for the solar industry. The company is the world’s leading manufacturer of microinverters that convert solar-generated D.C. energy to A.C. energy usable in homes and buildings. Enphase introduced the world’s first microinverter system in 2008 and has expanded its offerings to include battery storage systems and proprietary technologies that provide energy monitoring and control services for solar energy systems. It sells its products and solutions directly to solar system distributors, large installers and strategic partners.

We see Enphase having a substantial market share that is gained through a premium product offering, superior customer service and the development of a large and diverse network of solar installers and distributors. The company’s products and services address a growing residential solar market. Coupling battery backup systems with existing and newly installed residential solar systems could accelerate the company’s revenue and earnings growth over the next several years, in our view. Additionally, commercial and international expansion offer additional revenue and earnings upside. Enphase also plans to expand manufacturing capacity in the U.S. during 2023 to benefit from tax incentives related to domestic production included in the Inflation Reduction Act (IRA).”

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