EV ETF Showdown: Which Fund Delivers the Best Risk-Adjusted Returns?

The electric vehicle sector faces headwinds in 2024, with the S&P U.S. & China Electric Vehicle Index sliding 6.1% year-to-date against the S&P 500’s 14.7% gain. Yet demand for EV exposure remains strong among investors seeking decarbonization plays. Using TipRanks’ ETF analysis framework, we dissected three major contenders—Global X Autonomous & Electric Vehicles ETF (DRIV), iShares Self-driving EV & Tech ETF (IDRV), and KraneShares Electric Vehicles & Future Mobility Index ETF (KARS)—to help you navigate this volatile space.

Performance Face-Off: The Numbers Tell the Story

When evaluating ETFs tracking autonomous vehicles and electric vehicle manufacturers, fund size, cost structure, and returns become critical. DRIV emerges as the heavyweight with $510.34 million in assets under management and 76 portfolio companies. IDRV commands $212.60 million with 53 holdings, while KARS trails at $85.75 million with 58 positions.

Performance diverges significantly. DRIV has outpaced peers with superior year-to-date and one-year returns. IDRV posted a -19.9% year-to-date decline and -23.3% annual loss. KARS performed worst, down 22.6% year-to-date and 34.3% over twelve months.

Decoding Fund Composition: Where Exposure Lies

DRIV’s Strategic Positioning

Tracking the Solactive Autonomous & Electric Vehicles Index, DRIV deploys AI-driven stock selection across EV manufacturing and autonomous driving ecosystems. Its top holdings—Nvidia (13.95% weighting), Alphabet Class A, and Qualcomm—reveal a sophisticated tilt toward semiconductor and software enablers rather than direct EV manufacturers. The 0.68% expense ratio sits in the mid-range, while the semi-annual $0.22 per-unit dividend yields 1.68%.

However, DRIV experienced $174 million in net outflows over six months, signaling investor caution despite its AUM leadership.

IDRV’s Value-Chain Exposure

The iShares fund tracks the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index, capturing the full value chain from components to finished vehicles. Its 0.47% expense ratio represents the lowest cost structure among the three. Holdings concentrate in BYD Co., Tesla, and Rivian (13.04% combined), providing direct EV manufacturer exposure. Yet IDRV witnessed $78 million in redemptions, reflecting broader sector sentiment.

KARS: The Diversified Mobility Play

Replicating the Bloomberg Electric Vehicles Index, KARS spans EV manufacturing, autonomous systems, shared mobility, and component suppliers. The 0.72% expense ratio ranks highest, while the annual $0.23 dividend yields 1.13%. Recent $25 million outflows highlight underperformance concerns.

The Verdict: Weighing Trade-Offs

DRIV’s combination of substantial asset base, relative outperformance, and dividend income positions it as the preferred choice for risk-conscious investors seeking EV exposure. Its bias toward semiconductor and tech infrastructure reduces single-company risk while capturing structural tailwinds in autonomous vehicle development.

IDRV suits investors wanting direct EV manufacturer bets, though recent losses warrant caution. KARS appeals to diversification seekers but lags in both performance and cost efficiency.

The electric vehicle transition remains secular, but selecting the right vehicle—quite literally—requires balancing fund size, expense drag, and strategic positioning.