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 selecting the wrong vehicle (a single EV stock that underperforms) to profit from that view.

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 ($30 to $75 as of early September 2026), which can be less than the cost of one share of an EV stock.

Do EV ETFs pay dividends?

Yes, many EV ETFs pay dividends. Most funds hold some dividend-paying companies, which the funds collect and distribute to investors at least once a year. However, these funds typically offer low dividend yields and aren't ideal investments for those seeking to generate meaningful passive income.

Why invest in EV ETFs instead of individual EV stocks?

Investing in an EV ETF ensures that investors avoid the risk of being right on the thesis (that the EV market will grow significantly in the coming years) but picking the wrong vehicle to express that view (buying an individual ETF stock that significantly underperforms).

How much of a portfolio should be allocated to EV ETFs?

While EV ETFs provide diversified exposure to the EV sector, they can be more volatile and riskier than other ETFs. A good rule of thumb would be to allocate less than 10% of your portfolio to any thematic or sector ETF, including EV ETFs.

5 Best Electric Vehicle ETFs for 2026 and How to Invest

Q: 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, the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index, the Solactive Autonomous & Electric Vehicles Index, and the Bloomberg Electric Vehicles Total Return Index.

These ETFs allow investors to bet on EVs without picking individual stocks.

By Matthew DiLallo – Updated Sep 8, 2026 at 4:57 PM EST | Fact-checked by Frank Bass

+Fool.comon

Key Points

The Global X Autonomous & Electric Vehicles ETF offers wide EV industry exposure.
The iShares Self-Driving EV and Tech ETF focuses on autonomous driving.
The KraneShares Electric Vehicles & Future Mobility ETF provides access to the global EV market.

Loading paragraph...

GettyImages-1360553194-1200x800-5b2df79 — Image source: Getty Images.

Loading image...

Five top electric vehicle ETFs for 2026

There are several types of EV ETFs based on their investment strategy and focus area:

Broad-based EV ETFs: These funds broadly cover the entire EV megatrend.
Battery technology ETFs: These funds focus on companies that produce EV batteries and related materials such as lithium and cobalt.
Autonomous vehicle ETFs: These funds focus on smart mobility and autonomous technology.
Clean energy ETFs: These funds focus more broadly on the overall clean energy megatrend, including EVs.

Here's a look at five of the best to consider investing in this year:

Loading paragraph...

Ticker Information Table
Name and ticker	Current price
Global X Funds - Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV)	$33.37
KraneShares Trust - KraneShares Electric Vehicles And Future Mobility Index ETF (NYSEMKT:KARS)	$27.84
SPDR Series Trust - State Street SPDR S&P Kensho Smart Mobility ETF (NYSEMKT:HAIL)	$33.88
iShares Trust - iShares Self-Driving Ev And Tech ETF (NYSEMKT:IDRV)	$33.36
Global X Funds - Global X Lithium & Battery Tech ETF (NYSEMKT:LIT)	$69.51

Data as of Oct 8, 2026. Showing 5 of 5 total entries.

Loading ticker_table...

1. Global X Autonomous & Electric Vehicles ETF

Loading paragraph...

NASDAQ: DRIV

Global X Funds - Global X Autonomous & Electric Vehicles ETF

Today's Change

(-1.68%) $-0.57

Current Price

$33.37

Key Data Points

AUM

$370M

Dividend Yield

0.66%

Expense Ratio

0.68%

Top Holdings

MSFT

4.12%

NVDA

3.45%

INTC

3.37%

Loading company_card...

This ETF is best for broad exposure, providing diversification across all aspects of the EV industry, with a bias toward autonomous vehicles (AVs). The Global X Autonomous & Electric Vehicles ETF (DRIV -1.68%) aims to mimic the performance (before fees and expenses) of the Solactive Autonomous & Electric Vehicles Index. The fund had around $375 million in net assets under management (AUM) across 74 holdings in early September.

The ETF's top 10 holdings included several leading tech companies, such as Alphabet (GOOGL +0.81%)(GOOG +0.81%), Nvidia (NVDA -0.74%), Microsoft (MSFT +0.09%), and Intel (INTC +0.55%). The top ten also featured several major automakers, including Tesla (TSLA -0.75%), GM (GM -1.24%), and Toyota Motor (TM -1.43%). The ETF also invests in a mix of companies that make semiconductors, components, batteries, and software for EVs and AVs.

The ETF had a 0.68% expense ratio and provides a little income (0.3% yield). As of early September 2026, the fund had delivered a 13.7% annualized return since its inception.

2. iShares Self-Driving EV and Tech ETF

Loading paragraph...

NYSEMKT: IDRV

iShares Trust - iShares Self-Driving Ev And Tech ETF

Today's Change

(-0.74%) $-0.25

Current Price

$33.36

Key Data Points

AUM

$263M

Dividend Yield

1.92%

Expense Ratio

0.48%

Top Holdings

006400.KS

5.77%

373220.KS

5.37%

TSLA

4.84%

Loading company_card...

The iShares Self-Driving EV and Tech ETF (IDRV -0.74%) is the best fund for pure play exposure to the autonomous driving trend. It tracks the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index, which focuses on companies that aim to enable self-driving and autonomous vehicles.

The ETF had over $150 million in AUM across 53 holdings in early September 2026. Notable top-10 holdings included Tesla, Rivian, and BYD.

The fund had an ETF expense ratio of 0.48% and a trailing 12-month distribution yield of 1.8%. IDRV has delivered a 7.7% return since its inception.

3. KraneShares Electric Vehicles & Future Mobility ETF

Loading paragraph...

NYSEMKT: KARS

KraneShares Trust - KraneShares Electric Vehicles And Future Mobility Index ETF

Today's Change

(-1.92%) $-0.55

Current Price

$27.84

Key Data Points

AUM

$74M

Dividend Yield

0.20%

Expense Ratio

0.69%

Top Holdings

STM.PA

5.16%

6752.T

5.15%

006400.KS

5.07%

Loading company_card...

The KraneShares Electric Vehicles & Future Mobility ETF (KARS -1.92%) is best for global exposure. It tracks the Bloomberg Electric Vehicles Index, which provides exposure to the global EV market and to the supply chain that supports EV production and automation. This tiny fund had nearly $80 million in net AUM across 80 EV stocks as of early September 2026.

Notable holdings included Xiaomi (XIACF +0.64%), BYD (OTC:BYDD.F), Tesla, and Rivian Automotive (RIVN -1.17%). The ETF had an expense ratio of 0.69%. It distributes dividend income annually and has delivered a 4.1% annualized return since inception.

ETFs 4-5

Loading paragraph...

4. State Street SPDR S&P Kensho Smart Mobility ETF

Loading paragraph...

NYSEMKT: HAIL

SPDR Series Trust - State Street SPDR S&P Kensho Smart Mobility ETF

Today's Change

(-1.84%) $-0.64

Current Price

$33.88

Key Data Points

AUM

$18M

Dividend Yield

2.00%

Expense Ratio

0.45%

Top Holdings

VIA

3.36%

HMC

1.95%

NVDA

1.92%

Loading company_card...

The State Street SPDR S&P Kensho Smart Mobility ETF (HAIL -1.84%) is best for the broader smart-mobility trend. It focuses on U.S.-listed companies in the smart transportation sector, including EVs, AVs, transport systems, and drones. The fund tracks the S&P Kensho Smart Transportation Index.

This ETF is very small, with only about $20 million in AUM as of early September 2026 across 87 holdings. Notable companies among its top 10 holdings were Lyft (LYFT -1.01%), Rivian Automotive, Uber Technologies (NASDAQ:UBER), Honda Motor (HMC -0.44%), Nvidia, GM, and Tesla.

This ETF had an expense ratio of 0.45%. It can also provide some income (a 1.8% annualized fund distribution yield) and has delivered a 4.2% annualized return since its inception.

Loading paragraph...

5. Global X Lithium & Battery Tech ETF

Loading paragraph...

NYSEMKT: LIT

Global X Funds - Global X Lithium & Battery Tech ETF

Today's Change

(-2.19%) $-1.56

Current Price

$69.51

Key Data Points

AUM

$1.5B

Dividend Yield

0.72%

Expense Ratio

0.75%

Top Holdings

RIO

22.29%

6752.T

7.44%

6762.T

6.67%

Loading company_card...

The Global X Lithium & Battery Tech ETF (LIT -2.19%) is best for those seeking exposure to the EV supply chain, as it focuses on EV batteries. The fund tracks the performance of the Solactive Global Lithium Index by investing in a variety of lithium companies. The ETF invests in lithium miners, refiners, and battery manufacturers.

This much larger ETF had almost $1.6 billion in AUM across 42 holdings in early September 2026. Its top holding was Rio Tinto (RIO -2.85%), which accounted for over 20% of its net assets. The global mining giant is betting big on lithium. It bought Acadium Lithium for $6.7 billion in early 2025 and approved its first commercial-scale lithium project in late 2024 by greenlighting the $2.5 billion Rincon project. The fund's top-10 holdings also included Tesla and BYD.

This ETF has an expense ratio of 0.75%. It distributes dividend income semiannually (a yield of 0.8% as of mid-2026). This fund has delivered a 7.3% annualized return since its inception.

How to buy electric vehicle ETFs

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker into the search bar to bring up the ETF’s trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Loading paragraph...

Benefits and risks of investing in electric vehicle ETFs

Here are some of the benefits of investing in EV ETFs:

Legislative support: EVs benefit from strong legislative support, as some state and national governments are considering outright or effective bans on gas-powered cars.
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: Diversification across several EV-related companies helps reduce the impact if a single company underperforms.

Alternatively, here are some risks of investing in an EV ETF:

Potential underperformance: An EV ETF might underperform 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.
Supply constraints: EVs need materials such as cobalt, lithium, and copper. Strong demand for these and other materials could outstrip supply in the future, driving up costs and impacting EV makers' profit margins.

Methodology: How these ETFs were chosen

I evaluated the following factors when considering the best EV ETFs:

Expense ratios: I favored funds with lower expense ratios.
Assets under management: I preferred a larger, more established ETF.
Performance metrics: I reviewed the fund's past performance compared to its benchmark and other EV ETFs.
Thematic focus: I looked for ETFs focused on the EV megatrend.

Loading paragraph...

Should you buy electric vehicle ETFs?

According to BloombergNEF, global EV sales will rise 11% in 2026 to a record 23 million, representing 27% of all new car sales (up from 9% five years ago). That number should continue to climb. For investors who don't want to pick individual winning EV stocks but still want to come along for the ride, these ETFs offer different ways to capitalize on this opportunity. DRIV provides the broadest mix; IDRV is the purest exposure; KARS is more global; HAIL is the wider mobility trend; and LIT focuses on the battery side. That differentiation enables you to match the fund with the trend you have the most conviction in.

Loading paragraph...

Investing in electric vehicle (EV) ETFs: FAQ

Loading faq...

About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Alphabet, Intel, and Tesla. The Motley Fool has positions in and recommends Alphabet, Cummins, Intel, Microsoft, Nvidia, and Tesla. The Motley Fool recommends BYD Company, General Motors, and Xiaomi. The Motley Fool has a disclosure policy.

5 Best Electric Vehicle ETFs for 2026 and How to Invest

These ETFs allow investors to bet on EVs without picking individual stocks.

Key Points

Five top electric vehicle ETFs for 2026

1. Global X Autonomous & Electric Vehicles ETF

Key Data Points

2. iShares Self-Driving EV and Tech ETF

Key Data Points

3. KraneShares Electric Vehicles & Future Mobility ETF

Key Data Points

ETFs 4-5

4. State Street SPDR S&P Kensho Smart Mobility ETF

Key Data Points

5. Global X Lithium & Battery Tech ETF

Key Data Points

How to buy electric vehicle ETFs

Benefits and risks of investing in electric vehicle ETFs

Methodology: How these ETFs were chosen

Should you buy electric vehicle ETFs?

Related investing topics

8 Best Self-Driving Car Stocks for 2026 and How to Invest

Best Automotive Stocks for 2026 and How to Invest

Best Consumer Discretionary Stocks to Buy in 2026 and How to Invest in Them

Consumer and Industry Outlooks on Electric Vehicles

Investing in electric vehicle (EV) ETFs: FAQ

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

8 Best Self-Driving Car Stocks for 2026 and How to Invest

Best Automotive Stocks for 2026 and How to Invest

Best Consumer Discretionary Stocks to Buy in 2026 and How to Invest in Them

Consumer and Industry Outlooks on Electric Vehicles

Investing in electric vehicle (EV) ETFs: FAQ

Are EV ETFs a good investment?

Is there an index fund for electric vehicles?

Can I invest in EV ETFs with a small budget?

Do EV ETFs pay dividends?

Why invest in EV ETFs instead of individual EV stocks?

How much of a portfolio should be allocated to EV ETFs?

1. Global X Autonomous & Electric Vehicles ETF

4. State Street SPDR S&P Kensho Smart Mobility ETF

5. Global X Lithium & Battery Tech ETF

Benefits and risks of investing in electric vehicle ETFs

Methodology: How these ETFs were chosen

Should you buy electric vehicle ETFs?

Related investing topics

Five top electric vehicle ETFs for 2026

Key Data Points

2. iShares Self-Driving EV and Tech ETF

3. KraneShares Electric Vehicles & Future Mobility ETF

How to buy electric vehicle ETFs

Key Data Points

Key Data Points

Key Data Points

Key Data Points

ETFs 4-5