As Americans disdainfully eye the high prices at the gasoline pump, more consumers are considering the benefits of electric vehicles, which could help drive the momentum behind the electric vehicle industry and related exchange traded funds.
For instance, lithium sector-related ETFs that benefit from increased demand for lithium-ion car batteries have rebounded since the surge in crude oil and gasoline prices, including the Global X Lithium & Battery Tech ETF (NYSEArca: LIT) and the Amplify Advanced Battery Metals and Materials ETF (NYSEArca: BATT).
Additionally, to access this quickly developing market, investors have a number of electric vehicle-specific ETF options to choose from, including the KraneShares Electric Vehicles and Future Mobility ETF (NYSEArca: KARS), Global X Autonomous & Electric Vehicles ETF (NasdaqGM: DRIV), and Innovation Shares NextGen Vehicles & Technology ETF (NYSEArca: EKAR). Investors may also find exposure to traditional carmakers through the First Trust NASDAQ Global Auto Index Fund (NasdaqGM: CARZ).
For the week that ended March 13, one-quarter of visitors on Edmunds.com considered a hybrid, plug-in hybrid, or electric vehicle, or a 39% jump week-over-week and an 84% surge for the same week in February, the Wall Street Journal reports.
Over two-thirds of Americans surveyed by consumer-tracker, Piplsay, revealed they were nervous over the rising cost of fuel prices, and 49% indicated that the running cost of gasoline vehicles isn’t viable. Over half of those surveyed also believed electric vehicles could provide an alternative to internal-combustion-engine cars.
According to Edmunds, consumers who are looking into electric vehicles highlighted gas prices as the most important factor in their decision, followed by the environment.
The growing interest in electric vehicles is only part of the broader focus on clean energy technologies as fossil fuel prices surge following Western sanctions on Russia in response to the invasion into Ukraine. For instance, the German economic ministry in February announced plans to push forward wind and solar projects to diminish its dependence on Russian energy.
For more information on the car industry, visit our automobiles category.
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