What is an electric vehicle ETF?

Essentially, an electric vehicle ETF holds a basket of publicly traded stocks in the industry. These companies can either directly manufacture electric vehicles, automotive parts or provide services that support the evolution of electric cars.

What is a Carz ETF?

It also changed the index that it tracks and is now called the First Trust S-Network Future Vehicles & Technology ETF ( CARZ ). It is the closest thing to an auto ETF that trades in the U.S., excluding inverse and leveraged funds as well as those with less than $50 million in assets under management (AUM).

Is carz a pure-play Auto ETF?

That's because CARZ, the closest thing to a pure-play auto ETF, recently changed its investment objective and is now less focused on the industry. The auto industry outperformed the broader market over the past year. The closest thing to auto exchange-traded fund (ETF) are two funds: CARZ and VCAR.