KraneShares Electric Vehicles and Future Mobility Index ETF

KARS

Market cap $80M

DRIV and KARS stand out as EV-focused ETFs are poised to benefit from the IEA's forecast of more than 20M electric car sales in 2025.

By 2030, global trends will be dominated by AI, electrification, renewable energy, and demographic shifts (retired baby boomers), shaping investment opportunities and risks. Equity markets, especially US and AI-related stocks, are currently overvalued; investors should prepare a shopping list for quality ETFs and stocks to buy after downturns. Top ETFs span global, US, Asia, India, renewables, EVs, aging demographics, lithium, gold, and silver, balancing growth and defensive themes.

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.

It may not be the end of the quarter yet, but we have made it through summer, and that seems like a good checkpoint to evaluate the top ETF investment themes YTD. Let's take a moment to look in this year's thematic ETF rearview mirror.

Tesla Inc.'s TSLA new $4.3 billion battery agreement with South Korea's LG Energy Solution is a sweeping gesture toward reshoring battery making.

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.

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

Despite challenges in the U.S., electric vehicle sales continue to rise overseas. With demand growing in Europe and in China in the opening months of the year, investors would do well to consider the KraneShares Electric Vehicles and Future Mobility ETF (KARS).

Although U.S. enthusiasm continues to wane in the short-term for electric vehicles, global demand remains resilient. Savvy investors looking to capture growing EV demand would do well to consider the KraneShares Electric Vehicles and Future Mobility ETF (KARS).

Explore these ETFs as the potential removal of the EV tax credit is expected to impact the U.S. EV market significantly.