Electric vehicle (EV) exchange-traded funds (ETFs) are investment funds that provide broad exposure to the EV sector. EVs are reshaping the auto industry and creating opportunities not just for automakers but also for battery makers, chip suppliers, software firms, and raw-material producers.
Picking individual winners in a fast-moving industry can be tough. That’s why many investors prefer EV-focused ETFs, which provide exposure to the trend without relying on a single company to drive returns.
Here are some of the top EV ETFs to consider, along with what to know before investing.
Top electric vehicle ETFs to consider
Top EV ETFs | 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% |
State Street 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 | 0.48% |
Global X Lithium & Battery Tech ETF (NYSEMKT:LIT) | Invests in companies in the lithium industry, including miners and battery manufacturers | 0.75% |
NASDAQ: DRIV
Key Data Points
The ETF's top 10 holdings included several leading tech companies, such as Alphabet (GOOGL +1.71%)(GOOG +2.00%), Nvidia (NVDA +1.67%), Microsoft (MSFT +0.60%), and Intel (INTC +0.00%). The top ten also featured several major automakers, including Tesla (TSLA +3.01%) and Toyota Motor (TM +2.04%).
The ETF also invests in a mix of companies that make semiconductors, components, batteries, and software for EVs and AVs. 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 +1.27%) tracks the Bloomberg Electric Vehicles Index.
NYSEMKT: KARS
Key Data Points
3. State Street SPDR S&P Kensho Smart Mobility ETF
The State Street SPDR S&P Kensho Smart Mobility ETF (HAIL +1.84%) 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.
NYSEMKT: HAIL
Key Data Points
The ETF had about $20 million of AUM in early 2026. It had nearly 85 holdings. The most notable of its top 10 holdings was Nio (NIO -0.58%).
4. iShares Self-Driving EV and Tech ETF
The iShares Self-Driving EV and Tech ETF (IDRV +2.31%) 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 almost $1.7 billion of assets under management in early 2026.
NYSEMKT: IDRV
Key Data Points
The ETF had more than 40 holdings in early 2026, led by mining giant Rio Tinto (RIO +0.45%), 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.
Types of EV ETFs
Here 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 clean energy overall, including EVs.
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 the fund holds.
- 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 guarantee future results, it can be a potential indicator of how a fund might perform.
- 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).
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.
- 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 you might not want to invest 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.
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.
Key Trends in the EV Industry
Here are some key trends in the EV industry:
- U.S. EV sales plunged in the fourth quarter of 2025 following the expiration of the U.S. Federal tax credit. They were down 46% from the third quarter and 36% year over year. The slowdown in EV sales following the expiration of the tax credit led several automakers to cancel EV models and shift production to gas-powered vehicles.
- EV sales in China, the largest EV market, tumbled 32% in Feb. 2026 due to the phase-out of a tax incentive at the end of 2025 and the cancellation of trade-in funding.
- EV sales in Europe grew 21% in Feb. 26 as governments opted to maintain their incentive programs.
- While the end of government incentives has negatively impacted EV sales since the end of 2025, surging oil prices due to the war with Iran could incentivize buyers to go electric as gas prices rise.
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FAQ
FAQ on electric vehicle (EV) ETFs
About the Author
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.
