Audio length: 00:16:53
In this episode of ETF Spotlight, I talked with Matt Markiewicz, Managing Director at Innovation Shares. They recently launched the Innovation Shares NextGen Vehicles & Technology ETF (EKAR – Free Report) .
EKAR holds a basket of global stocks that have exposure to the theme of next generation vehicles including electric and self-driving/autonomous vehicles.
We are currently witnessing a dramatic transformation in the transportation system. There have been so many technological disruptions, particularly in the areas of electrification and automation, which will change the way we move around.
Self-driving cars are no longer science fiction, they are already being tested on the roads in so many cities. The costs of lithium-ion battery packs have fallen dramatically in the past few years, making electric vehicles mass producible.
Matt and I discussed why investors should invest in the future of mobility. He also talked about some of the key growth areas and major players in this field and recent developments in this area.
We then discussed the Innovation Labs Next Generation Vehicles Index, the benchmark for EKAR. Matt explained the process of selection of constituents—using an AI powered natural language processing algorithm.
Holdings are market-cap weighted, but there’s 7% cap on individual positions and a 40% cap on each category. About 40% of ETF assets are invested in US companies and rest in international companies.
We also discussed a couple recent crashes involving self-driving cars, however experts point out that autonomous cars are many times safer than human drivers.
