KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) seeks to track the Solactive Electric Vehicles and Future Mobility Index, which measures the performance of companies involved in electric vehicle production, autonomous driving technology, shared mobility services, and lithium battery manufacturing. This thematic equity ETF provides global exposure to the transportation revolution across developed and emerging markets.
How It Works
KARS uses a passively managed, modified market-capitalization-weighted approach that tracks companies deriving significant revenue from electric vehicles, autonomous driving, ride-sharing platforms, and energy storage solutions. The fund rebalances quarterly and includes holdings across the entire mobility value chain, from Tesla and BYD to semiconductor manufacturers and charging infrastructure providers. With approximately 50-70 global holdings, the ETF concentrates on pure-play companies rather than diversified industrials with minor EV exposure.
Key Features
- Pure-play exposure to electric vehicle ecosystem including manufacturers, battery producers, and autonomous driving technology companies globally
- Captures emerging market leaders like Chinese EV manufacturers often excluded from U.S.-focused technology ETFs
- Modified cap-weighting prevents over-concentration in Tesla while maintaining exposure to market leaders and innovative smaller companies
Risks
- This ETF can lose significant value if electric vehicle adoption slows due to regulatory changes, charging infrastructure delays, or battery technology setbacks
- High concentration in growth stocks makes the fund vulnerable to 40-60% declines during technology sell-offs or rising interest rate environments
- Emerging market exposure adds currency risk and potential volatility from Chinese regulatory actions affecting major EV manufacturers
Who Should Own This
Best suited as a satellite holding (5-15% of equity allocation) for growth-oriented investors with 3-7 year time horizons who believe in the electric vehicle transformation. High risk tolerance required due to thematic concentration and growth stock volatility. Appropriate for investors seeking targeted exposure to transportation innovation beyond traditional auto manufacturers.