February 24, 2021
Shares of Tesla are retreating, dragging other electric vehicle stocks along for the ride, but near-term volatility doesn’t dent the long-term electric vehicle thesis. Nor does it diminish the allure of exchange traded funds like the
SMOG seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Ardour Global IndexSM (Extra Liquid). Tesla and Nio represent large percentages of the ETF’s holdings. With an emphasis on lowering emissions via their electrical vehicles, Tesla and Nio have been producing stellar gains the past year.
“The transition from conventional cars to electric vehicles (EVs) is accelerating, directly impacting auto makers and auto parts providers,” according to VanEck research. “This is creating investment opportunities in battery cell makers, charging infrastructure and charge stations, optimization software, as well as semiconductors, cameras, etc. We strongly believe this accelera
SMOG seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Ardour Global IndexSM (Extra Liquid). “Low carbon energy companies” refers to companies primarily engaged in alternative energy, including renewable energy, alternative fuels, and related enabling technologies (such as advanced batteries). The fund offers:
One-Trade Access to Low Carbon Energy: A dynamic industry driven by growing demand for clean and alternative energy sources
A Pure Play with Global Scope: Global companies must derive at least 50% of total revenues from low carbon energy (i.e., alternative energy) to be added to the Index
The
VanEck Vectors Coal ETF (KOL) may no longer be trading as of December 22, but that only opens up opportunities for ETF investors to play a move away from fossil fuels. One fund to consider is the
With a Joe Biden administration ready to take over the White House, his emphasis on clean energy could negatively impact fossil fuels. With a potential move away from coal, this could have been an impetus for the fate of the KOL fund.
“The only coal-focused exchange-traded fund is closing at 12 years old, another sign of investors’ desire to withdraw from the industry,” a Barron’s article noted. “The VanEck Vectors Coal ETF, which went public in January 2008 under the ticker KOL, stopped trading this month and will return investors’ money on Dec. 22. It had about $35 million in assets. At its height in 2011, the ETF had $908 million, said Ed Lopez, head of ETF Product at VanEck Associates.”