A massive shift to electric vehicles (EVs) is underway. This transition will benefit electric vehicle makers and other suppliers, including software providers, semiconductor suppliers, component and part manufacturers, battery producers, and lithium miners.
Investors interested in this megatrend have lots of options. For example, they could invest directly in electric car stocks or in companies that manufacture EV batteries.
However, it can be hard to choose which company or technology might win in this emerging industry. That's why investors might want to consider taking a broader approach by purchasing an exchange-traded fund (ETF) that invests in a variety of companies with exposure to the EV market. Here's a closer look at some of the top electric vehicle ETFs to consider in 2025.
Best electric vehicle ETFs
Best electric vehicle ETFs in 2025
Here's a snapshot of the top EV ETFs to consider:
| Top Electric Vehicle (EV) ETF | Ticker Symbol | Description | Expense Ratio |
|---|---|---|---|
| Global X Autonomous & Electric Vehicles ETF | (NASDAQ:DRIV) | Broadly focused with a portfolio that includes tech giants, automakers, semiconductor companies, and other EV suppliers. | 0.68% |
| KraneShares Electric Vehicles & Future Mobility ETF | (NYSEMKT:KARS) | Narrowly focused on companies directly involved in EV and EV component production. | 0.72% |
| SPDR S&P Kensho Smart Mobility ETF | (NYSEMKT:HAIL) | Invests in EVs, autonomous vehicles, transport systems, and drone companies. | 0.45% |
| iShares Self-Driving EV and Tech ETF | (NYSEMKT:IDRV) | Broadly focused ETF weighted toward big tech and semiconductor companies. | 0.47% |
| Global X Lithium & Battery Tech ETF | (NYSEMKT:LIT) | Invests in companies in the lithium industry, including miners and battery manufacturers. | 0.75% |
ETFs 1 - 3
1. Global X Autonomous & Electric Vehicles ETF
This ETF provides diversification across all aspects of the EV industry, skewing toward autonomous vehicles (AVs). The Global X Autonomous & Electric Vehicles ETF (DRIV 1.33%) had almost $340 million of net assets under management (AUM) in mid-2025 and 75 distinct holdings.
The ETF's top holdings include Alphabet (GOOGL 1.13%)(GOOG 1.04%), Nvidia (NVDA -2.78%), Microsoft (MSFT -2.68%), and Apple (AAPL -0.16%). Major automakers, including Tesla (TSLA 3.59%) and Toyota Motors (TM 1.03%), which plans to offer 30 battery electric models by 2030, are further down the list. The ETF also invests in a mix of companies that make semiconductors, components, batteries, and software for EVs and AVs.
The fund's expense ratio is 0.68%. It aims to mimic the performance (before fees and expenses) of the Solactive Autonomous & Electric Vehicles Index.
2. KraneShares Electric Vehicles & Future Mobility ETF
The KraneShares Electric Vehicles & Future Mobility ETF (KARS 3.4%) tracks the Bloomberg Electric Vehicles Index. Its top holding is MP Materials (MP -1.92%), a leading U.S. producer of rare-earth materials and magnets crucial to EVs.
Other major holdings include Tesla and China's Geely Automobile.
This ETF had an expense ratio of 0.72%, total assets of more than $75 million in mid-2025, and more than 50 total holdings.
3. SPDR S&P Kensho Smart Mobility ETF
The SPDR S&P Kensho Smart Mobility ETF (HAIL 1.15%) focuses on U.S.-listed companies participating in the smart transportation sector, which encompasses EVs, AVs, transport systems, and drones. The fund tracks the S&P Kensho Smart Transportation Index.
The fund's notable holdings include Nvidia, Cummins (CMI -0.27%), Ambarella (AMBA 1.92%), and Avis Budget Group (CAR -0.16%).
The ETF comes with an expense ratio of 0.45% and had about $25 million of AUM in mid-2025.
ETFs 4 - 5
4. iShares Self-Driving EV and Tech ETF
The iShares Self-Driving EV and Tech ETF (IDRV 1.45%) focuses on companies that aim to enable self-driving and autonomous vehicles. It tracks the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index.
The ETF had about 50 holdings and net assets of more than $160 million in mid-2025. Its expense ratio is 0.47%. Notable holdings were Tesla, NIO (NIO -3.02%), and Albemarle (ALB 2.73%).
5. Global X Lithium & Battery Tech ETF
This ETF focuses on EV batteries. The Global X Lithium & Battery Tech ETF (LIT 7.53%) tracks the performance of the Solactive Global Lithium Index by investing in a variety of lithium companies. The fund invests in lithium miners, refiners, and battery manufacturers.
The ETF had 40 holdings in mid-2025, led by Albemarle, a leading lithium, bromine, and catalyst solution producer, at 8.4% of net assets. Leading EV manufacturer Tesla was another top holding.
The ETF had more than $1 billion of assets under management in mid-2025 and an expense ratio of 0.75%.
Key factors to consider when evaluating EV ETFs
Investors considering buying an EV ETF should review several key factors before adding one to their portfolio. Essential factors to weigh when selecting an EV ETF include:
- Expense ratios: A high expense ratio will eat into the returns generated by the EV stocks held by the fund.
- Assets under management: Smaller EV ETFs are at risk of closing due to a lack of investor interest.
- Performance metrics: While past performance doesn't mean a fund will deliver a repeat in the future, it's a potential indicator of how it might perform in the future.
- Thematic focus: With several EV ETF options, investors need to decide what specific theme they want to invest in (e.g., EVs, batteries, or autonomous vehicles).
Related investing topics
Should you invest?
Should you buy electric vehicle ETFs?
The age of the gasoline-powered automobile is coming to an end. That makes EV ETFs a potentially compelling long-term investment opportunity.
Here are some reasons to consider investing in EV ETFs:
- Legislative support: Some state and national governments are considering outright or effective bans on gas-powered cars. For example, California wants to require that all new passenger vehicles be zero-emission by 2035. Meanwhile, the European Union has mandated that all new cars sold must be zero-emission vehicles by 2035.
- Consumer intent: A growing percentage of consumers, especially in Europe and China, expect their next vehicle purchase to be an EV.
- A lower-risk investment: If you want to profit from this significant change in the transportation sector without having to choose among individual EV stocks, owning shares in an EV-focused ETF is a lower-risk option.
Alternatively, here are some reasons why you might not want to invest in an EV ETF:
- Potential underperformance: An EV ETF might underperform the returns of a high-powered EV stock such as Tesla.
- Politics: While California, for example, wants to require that all new cars be EVs in a decade, Congress and the White House have eliminated tax subsidies that benefited the EV industry.
Overall, EV ETFs provide broad exposure to the upside of EVs with less risk than an individual EV stock. Investors have several electric vehicle ETFs to choose from, all of which could gain immense value in the years and decades ahead as the transition to EVs accelerates.
FAQ
FAQ on EV ETFs
Are EV ETFs a good investment?
EV ETFs can be a good investment. They enable you to invest broadly in the EV megatrend. With an ETF, you won't risk being right on the thesis (demand for EVs will accelerate) but select the wrong vehicle (a single EV stock that underperforms) to profit from that view.
Is there an index fund for electric vehicles?
There are a few indexes that track EV stocks, including the S&P Kensho Electric Vehicle Index, NYSE FactSet Global Autonomous Driving and Electric Vehicle Index, Solactive Autonomous & Electric Vehicles Index, and Bloomberg Electric Vehicles Total Return Index.
What is the name of the EV ETF?
There are several EV ETFs, including:
- Global X Autonomous & Electric Vehicles ETF.
- KraneShares Electric Vehicles & Future Mobility ETF.
- SPDR S&P Kensho Smart Mobility ETF.
- iShares Self-Driving EV and Tech ETF.
- Global X Lithium & Battery Tech ETF.
Can I invest in EV ETFs with a small budget?
EV ETFs are ideal investment vehicles for those with a small budget. Most have relatively low share prices ($25 to $50), which can be less than the cost of one share of an EV stock.
