European white-label ETF platform HANetf has introduced the first thematic equity ETF targeting firms involved in the provision of charging station infrastructure for electric vehicles.
The ETF targets firms providing charging station infrastructure for electric vehicles.
The Electric Vehicle Charging Infrastructure Equity UCITS ETF has been listed on London Stock Exchange in US dollars (ELEC LN) and pound sterling (ELEP LN) as well as on Deutsche Börse Xetra (ELEC GY) and Borsa Italiana (ELEC IM) in euros.
Electric vehicles currently make up just 3% of the global car fleet; however, they are rapidly gaining ground with sales more than doubling in 2021 and Bloomberg predicting a market share of 60% by 2040.
With an estimated 600 million electric vehicles on the road by 2040, the mass rollout of charging infrastructure is critical to the smooth functioning of the EV ecosystem.
According to HANetf, while manufacturers of electric vehicles have seen significant growth in their valuations over the past few years, the charging infrastructure market has not yet mirrored these returns despite a clear connection between the industries.
This could present a compelling investment opportunity for investors seeking an underexplored play on the longstanding electric vehicles megatrend.
Hector McNeil, co-CEO and co-Founder of HANetf, said: “The future of cars is electric. In a few decades, from Shenzhen to San Francisco, it will become the norm to drive a battery-powered vehicle. Underpinning this revolution will be a huge build-out of car charging capacity. Just as the growth of traditional cars in the 20th century required the building of gas and petrol stations, the electric car revolution in the 21st century will require abundant charging stations and home units.”
Methodology
The ETF tracks the Solactive Electric Vehicle Charging Infrastructure Index which selects its constituents from a universe of developed and emerging market stocks, excluding Chinese A-shares, with market capitalizations above $100m and average daily trading volumes greater than $500,000.
The index includes any firm that is classified under ‘Battery Charging Equipment Manufacturing’ or ‘Electric Vehicle Charging Stations’ according to the Revere Business Industry Classification Standard (RBICS).
Any chosen company that is a proven violator of UN Global Compact principles or is materially involved in weapons, tobacco, or thermal coal is removed.
Constituents are weighted by market capitalization while capping any single stock at 15%.
As of 25 April, nearly two-thirds (62.1%) of the index was allocated to US-listed stocks with the next-largest country exposures being the Netherlands (12.3%), South Korea (7.7%), and Norway (7.2%).
Notable positions included ChargePoint (18.0%), EVGO (17.0%), Blink Charging (14.9%), Beam Global (12.3%), Wallbox NV (9.7%), and Apro (7.7%).
The ETF comes with an expense ratio of 0.65% and is classified as an Article 8 product under the European Union’s Sustainable Finance Disclosure Requirement (SFDR).