NEW YORK, April 17, 2018 /PRNewswire/ -- Global X Funds, the New York-based provider of exchange traded funds (ETFs), announced today the listing of the Global X Autonomous & Electric Vehicles ETF (Nasdaq: DRIV). Designed to track the Solactive Autonomous & Electric Vehicles Index, the fund holds a basket of companies involved in the production or development of electric vehicles (EVs) and autonomous vehicles (AVs). This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt.
Electric vehicles are showing signs that they are at the early stages of an adoption curve that could spark a rapid embrace of the technology. In 2017, electric vehicle sales represented 1.7% of all vehicle sales globally, exceeding 1 million for the first time, and increasing 51% from 2016.1 While autonomous vehicles are not yet as common as EVs, the race to full automation that requires no human input in any circumstance is well under way. According to some estimates, by simply freeing drivers of the necessity of spending time driving, AVs could boost U.S. GDP by $0.5-2.3 trillion by 2030.2
"Electric and autonomous vehicles are poised to have one of the most profound impacts on society since the industrial revolution, affecting a wide range of sectors in ways that we've only just begun to imagine," said Jay Jacobs, director of research at Global X Funds. "In bringing DRIV to market, we're excited to deliver access to revolutionary shifts in transportation that are at the early stages of their disruptive potential. And we're equally excited to watch how these technologies will change our daily lives."
The adoption of electric vehicles is expected to see a boon from bans on new sales of gas cars by major economies around the world. Norway, for example, proposes a ban on the sale of gas powered vehicles by 2025 and has already made meaningful strides, with EVs representing 39% of total sales in 2017.3 Others, like India, China, and the state of California, have announced similar aspirations. Various car manufacturers believe mass-market AV technology could be just a few years away, aiming for fully autonomous cars becoming commercially available between 2019 and 2021.
The fund is the sixth in Global X's suite of thematic technology ETFs. The suite totals $3.91 billion in AUM, as of March 29, 2018.
ABOUT GLOBAL X
Seeking to provide access to high-quality and cost-efficient investment solutions, Global X is a New York-based sponsor of exchange-traded funds (ETFs). Founded in 2008, we are distinguished by our smart core, income, alpha, risk management and access suites of ETFs and have more than 50 funds available across U.S. and foreign exchanges. Global X is recognized as a leader in developing intelligent investment solutions for our clients.
Investing involves risk, including the possible loss of principal. The investable universe of companies in which DRIV may invest may be limited. The companies in which the Fund invests may be subject to rapid changes in technology, intense competition, rapid obsolescence of products and services, loss of intellectual property protections, evolving industry standards and frequent new product productions, and changes in business cycles and government regulation. There are additional risks associated with investing in mining industries. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. DRIV is non-diversified.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Carefully consider the Fund's investment objectives, risks, and charges and expenses. This and other information can be found in the Fund's summary or full prospectuses which may be obtained at www.globalxfunds.com. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, nor does Solactive AG make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with Solactive AG.
1 International Energy Agency, "Global EV Outlook 2017," June 2017.
2 RethinkX, "Rethinking Transportation 2020-2030," May 2017.
3 Electrek, "Electric Cars Reach New 52% Market Share Record in Norway Thanks to Tesla's Record Deliveries," Jan 3, 2018.
SOURCE Global X Funds