The iShares Self-Driving EV and Tech ETF (IDRV) has delivered a 32% return over the past year, significantly outperforming the S&P 500's 18% gain. The fund currently trades at a price-to-earnings ratio of approximately 13.
IDRV manages $168 million in assets and provides exposure to the autonomous vehicle ecosystem. Its holdings include automakers like Tesla and Rivian, battery suppliers such as LG Energy Solution and LG Chem, materials producers including Albemarle, and emerging autonomy players like Aurora Innovation. The fund uses an equal-weight methodology, with its top holding representing just 4.7% of assets.
Chinese manufacturers BYD, NIO, and XPeng collectively account for about 11% of the fund's holdings. This exposure presents potential risks if U.S. tariffs on Chinese electric vehicles intensify or trade tensions escalate.
The fund's expense ratio stands at 0.47%, which is competitive for a thematic ETF. However, its small asset base raises liquidity considerations, with average daily volume remaining light. The portfolio turnover rate is 51%, indicating frequent rebalancing that could generate tax consequences in taxable accounts.
Year-to-date in 2026, IDRV has gained 3%. Individual holdings have shown notable performance, with Rivian surging 44% over the past year and gaining 14% in the last month alone.
The Global X Autonomous & Electric Vehicles ETF (DRIV) offers a comparable strategy with $340 million in assets, more than double IDRV's size. DRIV charges a 0.68% expense ratio compared to IDRV's 0.47%. Over the past five years, DRIV has outperformed IDRV with a 41% gain versus IDRV's flat performance, though both funds have shown similar returns of around 32-36% over the past year.
DRIV allocates 29% of its portfolio to information technology compared to IDRV's 24% allocation to consumer discretionary, emphasizing semiconductor and software advantages of U.S. companies over Chinese volume manufacturers. DRIV also maintains less Chinese exposure than IDRV.
Conservative investors seeking income should note that IDRV offers a 0.95% dividend yield, which barely covers inflation. The fund focuses on growth companies where capital appreciation drives returns rather than distributions.
Short-term traders may face challenges due to the fund's low liquidity and thematic focus, which creates volatility that could punish investors without a multi-year time horizon.