Author Topic: Autonomous Vehicle ETF  (Read 760 times)

Le Poisson

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Autonomous Vehicle ETF
« on: September 05, 2020, 03:35:47 PM »
So I was just reading about DRIV - an autonomous vehicle ETF, and noticed it offers a cheap way to get into APPL and TSLA without forking out hundreds of dollars per share.

Anyone have thoughts on this ETF?

https://www.globalxetfs.com/funds/driv/

The_Big_H

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Re: Autonomous Vehicle ETF
« Reply #1 on: September 05, 2020, 06:57:09 PM »
0.68% ER lol ripoff

Le Poisson

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Re: Autonomous Vehicle ETF
« Reply #2 on: September 05, 2020, 07:07:45 PM »
0.68% ER lol ripoff

... with a 0.67% div yield. The dividend offsets the MER, and the growth is pretty impressive, with a top ten list heavily weighted in massive growth areas.

But your comment sortof drills down to the essence of my question which is, is it worthwhile. I suppose it's easy to quote a MER but not look beyond that though.


MustacheAndaHalf

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Re: Autonomous Vehicle ETF
« Reply #3 on: September 05, 2020, 08:29:48 PM »
Did you know both companies just went through stock splits?
TSLA is $418/share and AAPL is $121/share
Try searching for "fractional shares", which is offered at some brokerages.

Note the ETF you want to buy only holds 3.7% Tesla and 3.5% Apple... so 93% is invested in other companies.  If you must buy an ETF with both Apple and Tesla, you can get more shares for less expense ratio with "SoFi 50 ETF" (SFYF, 0.29% expense ratio) which is 13% Apple and 10% Tesla.  I'm not familiar with the ETF, but I found it using a search on ETFDB, and avoiding expense ratios over 0.50%:
https://etfdb.com/stock/TSLA/

ice_beard

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Re: Autonomous Vehicle ETF
« Reply #4 on: September 05, 2020, 09:30:20 PM »
ARKQ  ARK Autonomous Technology & Robotics ETF
Focuses on: 
Autonomous Transportation
Robotics and Automation
3D Printing
Energy Storage
Space Exploration

https://ark-funds.com/arkq#holdings

ER 0.75%...  I would have told you back in February this was a waste of money, but feel that for some of my diversification, there is value in having a team of analysts studying particular fields such as these.  The future potential for growth in this sector is significant.  I don't want to put in the time required to chose the companies in this race, so I let ARK chose the companies for me and I pay 0.75% for that service. 

TSLA is the largest holding in ARKQ at 9.5%.
« Last Edit: September 05, 2020, 09:32:32 PM by ice_beard »

hodedofome

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Re: Autonomous Vehicle ETF
« Reply #5 on: September 06, 2020, 09:58:27 AM »
Just buy the 3x Tesla ETF. Itís cheap and extremely volatile :)

Indexer

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Re: Autonomous Vehicle ETF
« Reply #6 on: September 06, 2020, 10:52:45 AM »
ER of 0.68% is insane for an ETF.

I suppose it's easy to quote a MER but not look beyond that though.

One of the strongest predictors of a fund's long term performance is the expense ratio. Yes, it's important. Low cost funds have a statistically significant advantage over high cost funds. There are exceptions, but as a rule low cost funds outperform high cost funds over time.

Looking at the holdings in the fund, it doesn't make me think "Autonomous vehicles." It's a tech sector fund that includes a few auto companies like Tesla and Toyota.

ARKQ, 0.75% is even more insane. "I don't want to put in the time required to chose the companies in this race, so I let ARK chose the companies for me and I pay 0.75% for that service. " You just described how every active fund works, and the overwhelming majority of active funds underperform their index counterparts over time.

Let's compare them to the Vanguard Information Tech ETF, VGT, 0.10% ER.

YTD, 1 year, 3 year, 5 year.
DRIV: 17.42, 39.34, NA, NA
ARKQ: 27.13, 39.91, 20.70, 20.32
VGT: 28.79, 55.96, 28.03, 22.29

The lower cost, market weighted, index ETF wins across all time frames.

Now VGT doesn't include Tesla. It's considered a consumer discretionary sector stock, and that ETF, VCR, had returns of 26.61 YTD, 40.17 1 year, 17.05 3 year, 19.43 5 year. Very similar returns to the autonomous vehicle ETFs. VGT+VCR would target the same sectors that benefit from autonomous tech, while giving higher returns at lower costs with more diversification.
« Last Edit: September 06, 2020, 10:58:46 AM by Indexer »

hodedofome

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Re: Autonomous Vehicle ETF
« Reply #7 on: September 06, 2020, 10:58:51 AM »
TQQQ and FNGU for the win.

GreenEggs

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Re: Autonomous Vehicle ETF
« Reply #8 on: September 06, 2020, 08:01:55 PM »
ER of 0.68% is insane for an ETF.

I suppose it's easy to quote a MER but not look beyond that though.

One of the strongest predictors of a fund's long term performance is the expense ratio. Yes, it's important. Low cost funds have a statistically significant advantage over high cost funds. There are exceptions, but as a rule low cost funds outperform high cost funds over time.

Looking at the holdings in the fund, it doesn't make me think "Autonomous vehicles." It's a tech sector fund that includes a few auto companies like Tesla and Toyota.

ARKQ, 0.75% is even more insane. "I don't want to put in the time required to chose the companies in this race, so I let ARK chose the companies for me and I pay 0.75% for that service. " You just described how every active fund works, and the overwhelming majority of active funds underperform their index counterparts over time.

Let's compare them to the Vanguard Information Tech ETF, VGT, 0.10% ER.

YTD, 1 year, 3 year, 5 year.
DRIV: 17.42, 39.34, NA, NA
ARKQ: 27.13, 39.91, 20.70, 20.32
VGT: 28.79, 55.96, 28.03, 22.29The lower cost, market weighted, index ETF wins across all time frames.

Now VGT doesn't include Tesla. It's considered a consumer discretionary sector stock, and that ETF, VCR, had returns of 26.61 YTD, 40.17 1 year, 17.05 3 year, 19.43 5 year. Very similar returns to the autonomous vehicle ETFs. VGT+VCR would target the same sectors that benefit from autonomous tech, while giving higher returns at lower costs with more diversification.



@Indexer,
I'm curious about the source of your performance numbers for VGT & ARKQ? 


I checked a few different sources & none seem to give me the exact same numbers.  Portfoliovisulizer.com was the simplest place that I found to compare them side-by-side, but it showed the YTD & 1Y to be much higher for ARKQ than what you posted.  Also, when I checked on Vanguard's & Ark's web sites, Vanguard uses 8/31/20 and Ark uses 6/30/20 as dates, which are 60 days apart.  Also, the Yahoo chart isn't working right either.  It only shows about 1 year for ARKQ & won't show accurate 2Y, 5Y, & max timeframes. 


I'm not arguing that ARKQ is better than VGT, but I'm just trying to determine which performance numbers to believe. 


(Actually, I own some of each & I appreciate you pointing out that ARKQ doesn't earn its fees.  I should have researched it better.  I also have some ARKW which has much higher gains (YTD 95%, 1Y-125%, 3Y-46%, 5Y-43%).  What do you think about it? )

MustacheAndaHalf

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Re: Autonomous Vehicle ETF
« Reply #9 on: September 07, 2020, 06:47:07 AM »
Not indexer, but I trust Morningstar's numbers when there's a tie.  All this data is as of Sept 4 2020:

ARKQ 1 year : +80%  , 5 year avg : +28%
https://www.morningstar.com/etfs/bats/arkq/performance

VGT  1 year : +45% , 5 year avg : +27%
https://www.morningstar.com/etfs/arcx/vgt/performance

Indexer

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Re: Autonomous Vehicle ETF
« Reply #10 on: September 07, 2020, 02:02:03 PM »

I'm curious about the source of your performance numbers for VGT & ARKQ? 


VGT= Vanguard website.
ARKQ= the link provided in ice_beard's post.

https://ark-funds.com/arkq#holdings

39.91 1 year, 20.70 3 year, 20.32 5 years.

As of 6/30. Good catch that ARKQ's numbers are months off on their own website. That is very odd.