Guinness Atkinson Asset Management has become the latest entrant to the ETF industry with the launch of an actively managed thematic strategy targeting companies shaping the future of transportation.
The fund provides actively managed exposure to companies shaping the future of transportation.
Introduced under the firm’s newly formed ‘SmartETFs‘ platform, the SmartETFs Smart Transportation & Technology ETF (MOTO US) has listed on NYSE Arca and comes with an expense ratio of 0.68%.
It seeks long-term capital appreciation by investing in both developed and emerging market firms that are involved in the delivery of products or services relating to autonomous and electric vehicles.
Jim Atkinson, CEO of Guinness Atkinson Asset Management, commented, “We are thrilled to offer investors a strategy to participate in the shift already underway in the global transportation sector.
“The rise of electric vehicles as the preference of choice for global consumers, combined with these vehicles achieving full autonomy, will present an array of new investment opportunities as consumers re-evaluate their relationship with transportation.”
According to the fund’s prospectus, the portfolio will consist of 35 equities of approximately equal weight, a signature investment approach of Guinness Atkinson’s fund strategies.
Eligible stocks are sourced from across the smart transportation investment theme and may include companies that service electric or autonomous vehicles or provide infrastructure for such vehicles, as well as companies that develop or deliver technologies supporting automated transportation, driver assistance programs, mapping, and artificial intelligence.
The fund will also be able to invest in companies operating in new industries, such as “autonomous transportation as a service”, which are expected to emerge as the smart transportation theme develops.
The selection of individual positions will be driven by Guinness Atkinson’s proprietary research and based upon traditional fundamental analysis which assesses a company’s business prospects, valuation, and potential for share price appreciation.
“Investors are right to be excited by potential opportunities emerging from the smart transportation revolution,” said Atkinson. “Like any investment theme, there will be some excellent opportunities and also intense competition, which is why we felt an actively managed strategy, backed by our deep experience of investing in similar themes, such as global innovation and alternative energy, provides investors with a sensible approach to participate in this space.”
While the fund is the first actively managed ETF to target autonomous and electric vehicles, there are several passive ETFs covering this theme. These include the iShares Self-Driving EV and Tech ETF (IDRV US), the Global X Autonomous & Electric Vehicles ETF (DRIV US), the KraneShares Electric Vehicles and Future Mobility ETF (KARS US), and the Innovation Shares NextGen Vehicles & Technology ETF (EKAR US).
None of the ETFs has yet generated much investor interest. The largest being the iShares ETF with $30m in assets.