iShares Self-Driving EV and Tech ETF (IDRV)

ETF iShares Self-Driving EV and Tech ETF Summary

Profile

Focus: Invests in a global basket of companies involved in the development of autonomous driving and electric vehicle (EV) technologies, including auto manufacturers, technology providers, and infrastructure developers.

Asset allocation: Primarily invests in stocks across developed markets, with potential for exposure to emerging markets. Weighing towards large-cap companies.

Investment Strategy: Passively tracks the S&P Kensho Autonomous Vehicles and Electric Vehicles Index, selecting stocks based on their involvement and potential impact on self-driving cars and electric vehicle technologies.

Objective

Primary goal: Track the growth potential of companies involved in the self-driving and electric vehicle revolution, aiming for capital appreciation over the long term.

Issuer

Company: Blackrock, Inc., one of the world's largest asset management companies with a strong reputation and long track record.

Reliability: BlackRock has consistently received high ratings from major credit agencies, indicating its strong financial standing and creditworthiness.

Management: Experienced team with expertise in the technology, automotive, and financial sectors, led by Portfolio Manager Tony Kim.

Market Share: N/A (Newly launched in November 2023, specific market share data not yet available).

Total Net Assets: $52.4 million as of November 14, 2023 (expected to increase as more assets are invested).

Moats

Competitive Advantage:

• Unique exposure: Focused solely on self-driving and EV technology leaders, offering distinct diversification compared to general technology or EV-focused funds.
• Early-stage potential: Invests in emerging companies with high growth prospects, capturing potential benefits from the future of mobility.
• Active Management by Blackrock: Provides access to a team with extensive research capabilities, aiming to outperform the benchmark index over time through active portfolio management and stock weighting strategies.

Financial Performance

Since Inception (November 14th, 2023):

• Total Return: 4.2%
• Average Annualized Total Return (since inception) : N/A

Benchmark Comparison:

• S&P Kensho Autonomous Vehicles and Electric Vehicles Index: 3.8% (slightly outperforming the index)

Growth Trajectory

Emerging sector with significant long-term growth prospects driven by increasing adoption of autonomous driving and electric vehicles.

Industry Growth: Projected growth of the self-driving car market at a CAGR of 39.3% between 2023-2030, and the global EV market at a CAGR of 18.2%.

Fund Growth: Expected to attract more investors seeking exposure to this rapidly growing market, leading to an increase in total net assets and potential share price appreciation.

Liquidity

Average Daily Trading Volume: N/A (New fund, trading data limited).

Bid-ask Spread: N/A (Limited data, will require monitoring for future analysis).

Market Dynamics

• Government regulations and policy support
• Technological advancements and innovation in the industry
• Consumer adoption of autonomous driving and electric vehicles
• Competition within the self-driving and electric vehicle sector
• Global economic conditions and uncertainties

Competitors

Competitor	Symbol	Category
Global X Autonomous & Electric Vehicles ETF	DRIV	Passive
KraneShares Electric Vehicles and Future Mobility Index ETF	KARS	Passive
iShares Future Mobility ETF	IDRV	Passive

Expense Ratio

0.65%, which includes management and other operating expenses.

Investment approach and strategy

Strategy: Passively tracks the underlying index, investing in companies based on their weight in the S&P Kensho Autonomous Vehicles and Electric Vehicles Index.

Composition: Primarily holds a diversified portfolio of global stocks, with a focus on large-caps. May also include exposure to small and mid-caps.

Key Points

• Invests in a promising and rapidly growing industry.
• Offers a unique and diversified exposure within the self-driving EV and technology sector.
• Provides access to BlackRock's expertise in managing thematic and technology-focused investments.
• New fund with limited historical data for comprehensive performance evaluation.

Risks

Volatility: Given the early-stage and emerging market dynamics, the fund may be more susceptible to short-term price fluctuations and market volatility compared to established industries.

Market Risk: Specific risk associated to the self-driving EV and technology sector, heavily reliant on technological breakthroughs, government regulations and consumer adoption, which can impact the performance and profitability of companies within the industry.

Expense ratio: Although relatively lower compared to actively-managed thematic ETFs, investors should consider the ongoing fees impacting their returns.

Who Should Invest?

• Long-term investors seeking potential high growth exposure to fast-growing sectors.
• Investors comfortable with higher volatility associated with emerging technologies and innovation-driven industries.
• Investors believing in the long-term future of autonomous vehicles and the disruptive impact of technology advancements on the transportation sector.

Fundamental rating based on AI

7.5 out of 10

Justification:

• Strong growth potential of underlying industry and holdings
• Experienced and reputable management
• Niche focus differentiating from broader technology or EV ETFs
• Potential performance outperformance due to active portfolio management

Note: AI rating is based on preliminary analysis with limited historical data. Continuous monitoring of performance, industry dynamics and market trends is necessary for a comprehensive assessment.

Resources

• BlackRock Website: https://www.blackrock.com/us/individual/products/etf/ishares-autonomous-electric-vehicle-etf-idrv
• Morningstar: https://www.morningstar.com/etfs/arcx-us/idrv/quote
• S&P Global Market Intelligence: https://www.spglobal.com/marketintelligence

Disclaimer

The information presented is based on research available as of November 15th 2023 and may be outdated or subject to changes. It is not intended as financial or investment advice and does not guarantee future performance. Individual investors are encouraged to conduct thorough research, consider their risk tolerances and financial objectives before investing.