An ETF To Buy For The Autonomous Vehicle Revolution

DRIV’s major holdings, which have driven its performance in the short term, are Tesla Inc. (TSLA), Plug Power Inc. (PLUG), Apple, Inc. (AAPL) and NIO Limited (NIO). The ETF’s has a 4.85% weighting in  TSLA, while PLUG and NIO account for 3.98% and 2.92% weightings, respectively. It also has significant exposure to the tech industry, which accounts for 43.6% of its portfolio.

Buy & Hold Grade: A

In terms of proximity to its 52-week high, which is a key factor that our Buy & Hold Grade considers, DRIV is well-positioned. It is currently trading just 0.6% below its 52-week high of $27.23, which it hit yesterday.

DRIV has gained 76% over the past year, which can be attributed to the ETF’s investment strategy . It has a strong position in the  EV industry, which has been surging since 2020 amid rising concerns regarding climate change and the EV boom. DRIV’s four -year average dividend yield is 1.42%.

Peer Grade: A

DRIV is currently ranked #39 of 100 ETFs in the Technology Equities ETFs group. Other popular ETFs in this space are Vanguard Information Tech ETF (VGT), SPDR Select Sector Fund – Technology (XLK - Get Rating) and ARK Innovation ETF (ARKK - Get Rating).

While ARKK beat DRIV by gaining 84.3% over the past six months, VGT and XLK returned 24% and 20.3%, respectively, over this period.

Industry Rank: A

The Technology Equities ETFs group is ranked #11  of 123 industries in the universe. As one of the most profitable sectors over  the past year, the technology industry was the predominant driver of the stock market over the past year.

Given the global vaccine deployment, many believe this momentum will decline in 2021. However, an increasing reliance on technology for even basic requirements coupled with expanding remote working arrangements  should support this industry’s growth. With a comprehensive exposure to the biggest industries operating in this segment, the Technology Equities ETF should enjoy significant momentum in the upcoming months.

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Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please ...

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