Solactive has launched Solactive Autonomous & Electric Vehicles index, an index tracking the performance of companies involved in the production of electric or hybrid vehicles and the development of self-driving technology.
The index is based on ARTIS (Algorithmic Theme Identification System), a proprietary algorithm-based screening tool developed by Solactive. ARTIS makes use of systems such as natural language processing to select companies that have best exposure to specific themes. The Solactive Autonomous & Electric Vehicles index is licensed to Global X and is used as the basis for the Global X Autonomous & Electric Vehicles ETF (DRIV) listed on the NASDAQ stock exchange.
Autonomous driving and electric vehicles are beginning to revolutionise the transportation industry. An increasing number of long-established car companies have already started integrating these disruptive technologies into their business models. Industry forecasts show that the market for electric vehicles and autonomous driving will accelerate in the upcoming years, supported by factors such as climate regulation, technological advancements, consumer preferences, and falling costs. As such, the transportation industry is expected to undergo significant disruption, creating growth opportunities for companies contributing to these innovations.
The index is calculated as a net total return index and is published in USD. The index is composed of 75 index members. Constituents include electric vehicle and autonomous driving manufacturers, component producers, suppliers of raw materials, and suppliers of technologies. Eligible companies must have a market capitalisation of at least $500m. The index is weighted according to modified free-float market capitalisation. The composition is readjusted semi-annually.