Published on September 29th, 2017 | by James Ayre0
Canadian Investment Fund Launching World’s First “Future Car” ETF
September 29th, 2017 by James Ayre
The Canadian investment fund Evolve Funds Group is planning to launch what will be the world’s first “future car”–focused exchange-traded fund (ETF) on Friday, according to reports.
This “Evolve Funds Automobile Innovation Index ETF” will include a number of different firms involved in the electric vehicle sector, self-driving tech, and connected car supply chains, according to Evolve Funds Group execs. Basically, it’s a CleanTechnica-obsessed fund.
In other words, those wanting to invest in the “future auto industry” right now can do so without actually knowing too much about individual companies — presuming that you trust the judgement and ability of Evolve Funds Group traders, that is. I’ll note here that, unsurprisingly, the ETF apparently features Tesla stock.
“Five years ago we didn’t have the blind-spot checker, the lane assist, and now you’ve got parking assist; technology has been getting integrated into vehicles to make them safer, it’s just going to intensify,” commented Evolve Funds Group Inc CEO Raj Lala said in an interview with Reuters.
Reuters provides more: “The 32 equally-weighted stocks that make up the fund’s initial cohort also includes suppliers such as Delphi Automotive Plc and Visteon Corp, semiconductor companies Cirrus Logic Inc, Infineon Technologies AG and Nvidia Corp, hydrogen fuel cell company Plug Power Inc and industrial battery maker EnerSys.
“… Evolve Funds worked with German index provider Solactive AG to create the passively traded model, which will have hedged and unhedged versions priced in Canadian dollars. A US-dollar denominated version will follow within several weeks. The fund choose the five automakers with the highest research and development to sales ratio, which include Ford Motor Co, General Motors Co, Tesla Inc and Volkswagen AG.
Still confused? Here’s more of an explanation: “We’re not trying to pick the one or two winners,” stated Elliot Johnson, Evolve’s chief operating officer. “We wanted to make sure we’re making a bet that’s broad, but also specific to the activities that are going on.”
As a bit of background here, this is apparently only the third instrument that Evolve has launched, following on earlier cybersecurity and gender diversity products, interestingly enough.