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DRIV - BetaShares Electric Vehicles and Future Mobility ETF

Dona Ferentes

A little bit OC⚡DC
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DRIV, the BetaShares Electric Vehicles and Future Mobility ETF listed on the ASX mid Dec, 2021. Currently only $6 million of assets, and trading around $11.90

Mgmt Costs** (% p.a.) 0.67%

DRIV aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of global companies at the forefront of innovation in automotive technology. Top 10 holdigs:
NameWeight (%)
TESLA INC10.8
UBER TECHNOLOGIES INC6.9
APTIV PLC6.5
NIO INC6.0
VOLKSWAGEN AG5.4
VOLVO AB4.9
PACCAR INC4.4
XPENG INC3.7
BYD CO LTD3.6
LI AUTO INC3.6
 
DRIV, the BetaShares Electric Vehicles and Future Mobility ETF listed on the ASX mid Dec, 2021. Currently only $6 million of assets, and trading around $11.90

Mgmt Costs** (% p.a.)0.67%

DRIV aims to track the performance of an index (before fees and expenses) that provides exposure to a portfolio of global companies at the forefront of innovation in automotive technology. Top 10 holdigs:
NameWeight (%)
TESLA INC10.8
UBER TECHNOLOGIES INC6.9
APTIV PLC6.5
NIO INC6.0
VOLKSWAGEN AG5.4
VOLVO AB4.9
PACCAR INC4.4
XPENG INC3.7
BYD CO LTD3.6
LI AUTO INC3.6

It sounds like a good idea, but I'm not sure about UBER. I looked at investing in Uber about 12 months ago and couldn't find a compelling reason, they have struggled to make any decent profits in the past, and the future doesn't look very bright for them.

Unfortunately, competition has proved relentless. In the United States alone, Uber is still locked in a fight with Lyft for rides and DoorDash for food deliveries, among others. It cannot risk removing subsidies completely. In April, the company announced that it would need to spend another $250 million (€215 million) on incentives to ward off a driver shortage.

Prices are a delicate calculation. Too high and passengers will cancel. Too low and drivers will find other work. Plus Uber has to strike the right balance with the share of fees it takes.

There is a further problem. If drivers obtain the employee status that many are fighting for – and which some countries and states are demanding – future profits could evaporate.

 
Chart wise, at a quick glance pretty much the same conclusion as yourself. Range trader pivoting around the $45 level.

Although it is young and listed back in May '19 just a few months before the pandemic hit. Most of the world is fairly homebound and unlikely to want to be confined close to a stranger for any length of time in a car. It may do something once the pandemic peters out. Let's see.

UBER 6.1.22.png
 
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