Investing in Electric Vehicle ETFs

Best electric vehicle ETFs in 2025

Here's a snapshot of the top EV ETFs to consider:

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 had almost $425 million of net assets under management (AUM) in late 2024 and 75 distinct holdings.

The ETF's top holdings include Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL). Major automakers, including Tesla (NASDAQ:TSLA) and General Motors (NYSE:GM), which plans to go all-electric in the coming years, 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 tracks the Bloomberg Electric Vehicles Index. Its top holding is Contemporary Amperex Technology, or CATL, a leading Chinese battery manufacturer that doesn't trade on U.S. exchanges.

Other major holdings include Tesla and China's NIO (NYSE:NIO) and BYD (OTC:BYDDY).

This ETF had an expense ratio of 0.72%, total assets of almost $90 million in late 2024, and more than 60 total holdings.

3. SPDR S&P Kensho Smart Mobility ETF

This ETF 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 holds several EV makers, including Tesla, NIO, and another Chinese EV manufacturer, Li Auto (NASDAQ:LI), in the top 10. In addition, other notable holdings include Nvidia, Cummins (NYSE:CMI), Allison Transmission (NYSE:ALSN), and Aurora Innovation (NASDAQ:AUR).

The ETF comes with an expense ratio of 0.45% and had about $25 million of AUM in late 2024.

4. iShares Self-Driving EV and Tech ETF

The iShares Self-Driving EV and Tech ETF 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 $190 million in late 2024. Its expense ratio is 0.47%. Notable holdings were Tesla, Li Automotive, BYD, NIO, and Rivian Automotive (NASDAQ:RIVN).

5. Global X Lithium & Battery Tech ETF

This ETF focuses on EV batteries. The Global X Lithium & Battery Tech ETF 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 late 2024, led by Albemarle (NYSE:ALB), a leading lithium, bromine, and catalyst solution producer, at 7.9% of net assets. Other top holdings include

• Leading EV manufacturers Tesla and BYD.
• Eve Energy: A lithium battery platform company offering core technologies and solutions for consumer and power batteries.
• Contemporary Amperex Technology: The world's largest producer of EV batteries.
• LG Chem: Manufactures EV batteries through its subsidiary, LG Energy Solution.

The ETF had almost $1.3 billion of assets under management in late 2024 and an expense ratio of 0.75%.

6. Simplify Volt RoboCar Disruption and Tech ETF

This ETF takes a concentrated approach. It focuses on the few companies that appear poised to dominate the EV and autonomous driving industry. The ETF further enhances that concentrated exposure with options. That strategy makes it a high-risk, high-reward way to play the EV sector.

As of late 2024, this ETF's top holding was Tesla, at a 17% target allocation of its total holdings split between an 11% equity position and a roughly 6% call options position. The fund is extremely bullish on Tesla, believing that the market value of the company doesn't fully account for its ability to dominate the autonomous driving sector.

Other top holdings include semiconductor stocks Nvidia (21% equity position) and AMD (NASDAQ:AMD) (11%) and technology giants such as Alphabet, Microsoft, and Apple. In addition, the fund holds put options on the Nasdaq to hedge against a potential broad tech stock sell-off. In a sense, this ETF acts more like a hedge fund that's making a focused bet on technology disrupting the auto sector.

The ETF had more than $5.4 million in net AUM in late 2024 and a 0.99% expense ratio.

Should you buy electric vehicle ETFs?

The age of the gasoline-powered automobile is coming to an end. Some state and national governments are considering outright or effective bans on gas-powered cars. For example, California is requiring all new passenger vehicles to be zero-emission by 2035. Meanwhile, the European Union has proposed a 55% reduction in carbon dioxide emissions from new vehicles by 2030 and a 100% reduction by 2035. 

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 exchange-traded fund is a smart choice. 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.