First Trust Exchange-Traded Fund II First Trust S-Network Future Vehicles & Technology ETF

CARZ

Market cap $41.7M

Fed rate cuts in October may fuel gains in SHV, VYM, ITB, SPYG & CARZ as lower borrowing costs should favor income plays, housing, growth & autos.

The last year has been good for automobile sales. Although looming tariffs and current tax credits tell the story of the past year, actual tariffs foretell lower sales in the coming year.

Q3 earnings season kicks off with PEP and DAL -- sector ETFs like ITA, XLK, and XLF may gain, while CARZ, PKB and IYT could lag.

The global electric vehicle market remains highly competitive, with China as the dominant region and the U.S. seeing a temporary Q3 boost from expiring tax credits. BYD Company Limited leads in global EV sales but saw a rare year-over-year decline in Q3, mainly due to intense competition in China, though exports are surging. Xiaomi is emerging as a standout, rapidly scaling EV sales and maintaining strong momentum despite being a newcomer and not an EV pure-play.

Over the last 100 trading days, or roughly five months, the S&P 500 Index (SPX) has surged more than 25%.

With nearly 70% of global rare earth production and more than 90% of processing taking place in China, the world remains heavily reliant on the country for rare earth element supplies. Rare earth elements are a group of 17 minerals, including neodymium, dysprosium and lanthanum, which are used for various applications.

After electronics, the administrative windfall is now shifting to autos. Trump hinted at offering some short-term tariff relief to automakers to give them time to develop a future roadmap.

China hit back with 125% tariff on the U.S. after the latter imposed 145% duty on Chinese goods.

What you need to know about Trump tariffs and its impact on sector ETFs.

Look at ETFs that can be affected as President Trump announces 25% tariffs on auto imports to the United States.