iShares Self-Driving EV and Tech ETF (NASDAQ:IDRV) has rebounded sharply, gaining 14.41% in the past month and 48.01% over the trailing year.
After years of delays, autonomous vehicles are shifting from pilot programs to commercial reality.
The iShares Self-Driving EV and Tech ETF offers a cost-effective way to invest in global companies advancing self-driving tech and electric vehicles. IDRV's holdings include Tesla, Li Auto, Arcadium Lithium, XPeng, and BYD, providing a comprehensive view of the EV sector and supply chain. The fund's sector allocation focuses on Consumer Discretionary, Industrials, Materials, and Information Technology, with significant investments in Chinese firms.
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The described company operates as an investment fund focused on the sectors of autonomous and electric vehicles. It constructs its portfolio by selecting equity securities from companies across 43 developed or emerging market countries, ensuring these companies earn a significant portion of their revenues from industries related to autonomous or electric vehicles. These industries are identified and defined according to specific criteria set by the Investment Definition Index (IDI). By adhering to a strategy that mandates at least 80% of its assets be invested in the securities making up its benchmark index or in other investments mirroring the economic characteristics of these index components, the fund aims to provide investors with exposure to the burgeoning autonomous and electric vehicle industries.
This product involves the allocation of funds into stocks of companies actively involved in autonomous or electric vehicle industries across a range of markets. The selection criteria ensure these companies are substantial contributors or benefactors to the growth and advancement of these technological areas, aiming to capture the financial upside of the industry's expansion.
The fund's investment strategy is not limited to a single geographic region; instead, it diversifies its portfolio across 43 developed and emerging markets. This wide market base potentially lowers investment risk through geographical diversification while tapping into the global advancement of autonomous and electric vehicles technologies.
In addition to direct investments in component securities of the index, the company also engages in making investments that have economic characteristics substantially identical to those securities. This could involve derivative instruments or other financial products that mimic the performance of the index components, offering investors a broader range of exposure to the target industries.