As clean energy names continue to climb amid global tensions and favorable legislation, investors can add exposure with the SmartETFs Smart Transportation & Technology ETF (MOTO).
MOTO is an ETF to consider for investing in autonomous and electric vehicles and transportation as a service.
The ETF is actively managed and fully transparent, investing in approximately 35 equally weighted positions on a global basis, according to SmartETFs.
Electric vehicles (EV) represent a major area of growth in the energy transition. The Biden administration invoked The Defense Production Act with $750 million to boost U.S. production of materials needed to manufacture EVs and EV infrastructure.
The U.K. government also announced an expansion of EV charging points from 30,000 to 300,000 by 2030 in a clean energy plan worth nearly 1.6 billion euros, according to the U.K. government.
Previously, California Governor Gavin Newsom presented a $286.4 billion budget proposal for the 2022–2023 fiscal year with $22.5 billion in climate-related investment, including $6.1 billion on EV-related initiatives such as EV purchase subsidies, new infrastructure for passenger and heavy-duty vehicles, and investments into emerging opportunities in maritime, aviation, and rail. Transportation represents around 50% of the state’s carbon emissions, according to SmartETFs.
While EVs are currently expected to account for only 5.4% of all new car sales in the U.S. in 2022, analysts project that this percentage will jump to almost 30% by 2030, supported by recent favorable legislation.
MOTO invests in companies that have more than 50% of their assets or revenues derived from certain smart transportation objectives, including producing results for safer, cleaner, or connected transportation, transportation as a service, or overall smart transportation.
MOTO also invests in technology companies whose products or services are used in transportation, such as those involved in software, hardware, or autonomous vehicle development.
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