BlackRock’s iShares has launched an exchange-traded fund that taps into the growing global emphasis on sustainable energy sources in transportation.
The iShares Electric Vehicles and Driving Technology Ucits ETF (Ecar provides its investors with access to companies across the electric vehicle value chain and has a total expense ratio (TER) of 0.4 per cent.
It tracks the Stoxx Global Electric Vehicles and Driving Technology index which is made up of firms involved in manufacturing, battery suppliers and component producers.
Rob Powell, lead strategist, iShares Thematic Investing at BlackRock, said: “We are on the cusp of another huge leap in the way we get from A to B, as the irreversible trend towards electric vehicles unfolds. And beyond the vehicle manufacturers, producers of battery technology, autonomous vehicle components and charging infrastructure will all benefit from this revolution in transportation.
“Thematic investments, such as Ecar, can help investors seek long-term growth while expressing a view on the innovative companies that will shape the global economic future.”
According to July 2018 data from BlackRock and Bloomberg New Energy Finance, there are 1.1m electric vehicles sold every year and this is expected to rise to 60m by 2040.
In 2018, the International Energy Agency said transport accounted for a roughly a quarter of CO2 emissions globally.
Martin Bamford, chartered financial planner at Informed Choice, said: “Thematic investing like this always looks appealing but can be difficult in practice. There’s no guarantee that the companies developing solutions today for sustainable transportation energy sources will be those that succeed in the future.
“In fact, there’s a very big risk that money will be invested in companies with promising solutions, who find themselves usurped by new entrants or established businesses developing their own solutions.
Pictured: BMW’s i3 is one of the more recent releases to the UK electric car market
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What’s the investment case for electric vehicles?
