The global automotive market is massive. Nearly 79 million automobiles were sold around the world last year, the same estimate holds for 2019. That's well over the average of 54.9 million annually from 2000 to 2015 and roughly double the average annual rate seen in the 1990s.Here in the U.S., driving is part of American culture and has been for more than a century. Whether or not drivers own a car made by a domestic manufacturer, there is no denying companies like Ford (NYSE:F) and General Motors (NYSE:GM) are woven into the fabric of American history.For investors who embrace exchange-traded funds (ETFs), there is an interesting scenario as it pertains to auto industry exposure. Undoubtedly, Ford, GM, Tesla (NASDAQ:TSLA) and more are important companies. They can be accurate gauges of consumer sentiment and other important economic data points, but there simply are not many auto-related ETFs on the market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Sell for an Economic Slowdown Despite that dearth of auto ETFs, there are a few credible offerings in this arena. Let's have a look at some potentially worthwhile auto ETFs right here. Auto ETFs: First Trust NASDAQ Global Auto Index Fund (CARZ)Expense Ratio: 0.7% per year, or $70 on a $10,000 investment.Of the two original auto ETFs, the First Trust NASDAQ Global Auto Index Fund (NASDAQ:CARZ) is the last one standing. In some ways, CARZ epitomizes why there are no other traditional auto ETFs. The fund is more than eight years old and has just over $18 million in assets under management.Home to 32 stocks, CARZ is a traditional spin on automobile investing. GM, Toyota (NYSE:TM) and Honda (NYSE:HMC) combine for about a quarter of the fund's weight. Ford is the fourth-largest holding at almost 8%.One factor keeping investors away from CARZ is the high fee. Yes, industry funds carry higher fees than traditional broad market ETFs, but 0.7% is high even for an industry or thematic ETF. Aberdeen Standard Physical Palladium Shares ETF (PALL)Source: Shutterstock Expense Ratio: 0.6%As its name implies, the Aberdeen Standard Physical Palladium Shares ETF (NYSEARCA:PALL) is not an auto ETF, it is play on physical palladium. However, there is ample relevance to automobile sales trends here, because palladium is one of the key components in making catalytic converters in American and Chinese cars, among others."Approximately 80% of palladium demand comes from the automotive industry," according to S&P Dow Jones Indices. "Its other uses include electronics, dentistry, and jewelry. As regulations on emissions have tightened, demand for palladium to be used in the catalytic converters of gasoline-powered vehicles has risen. Gasoline vehicles have also become more popular in the wake of a number well-publicized diesel emissions scandals (diesel-powered cars use platinum in their catalytic converters)."And when they say physical palladium, they mean it -- basically 100% of the portolio is in palladium bullion. * 7 Retail Stocks to Buy for the Second Half of 2019 As for performance, PALL has plenty of that. It is up more than 23% this year, or more than double the gains of competing gold ETFs. Global X Autonomous & Electric Vehicles ETF (DRIV)Expense Ratio: 0.68%The Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is one of the auto ETFs that is a play on the future industry; a future that is destined to include autonomous vehicles and many more plug-in and hybrid cars. In other words, DRIV has the potential to be an exciting auto ETF while CARZ, assuming it survives, will probably be boring.CARZ member firms include companies that are "involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt," according to Global X.Importantly, data indicate electric vehicle adoption is surging."Although global auto sales slowed by over 2% during the first quarter of 2019 relative to a year prior, sales of electric vehicles soared by 57%, reaching 496,000 vehicles in quarterly sales," according to Global X research.Top holdings in the ETF include Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Texas Instruments (NASDAQ:TXN). Global X Lithium & Battery Tech ETF (LIT)Expense Ratio: 0.75%Like the aforementioned PALL, the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) is not a dedicated auto ETF, but the original lithium fund is heavily levered to demand trends in the electric and hybrid vehicle markets. Plus, LIT has staying power. It has been around more than nine years and has around $515 million in assets under management, which is a solid tally for a thematic fund.While LIT is not chock full of auto stocks, Tesla is one of its top 10 holdings. But its credibility as an auto ETF comes by way of the importance of lithium in producing the batteries powering electric cars."It's important to note that an EV's price tag is primarily driven by the cost of its battery," said Global X. "Four years ago, batteries represented around 57% of the total price of a medium-sized EV. "Yet by 2030, the cost is expected to fall to just 14%, setting a trajectory that should allow EVs to reach price parity with ICE vehicles by the mid-2020s." * 10 Best Stocks for 2019: A Volatile First Half Translation: as electric vehicles become comparably priced to traditional automobiles, the former is likely to see a significant increase in demand, and that could be a boon for LIT. KraneShares Electric Vehicles & Future Mobility ETF (KARS)Expense Ratio: 0.7%The KraneShares Electric Vehicles & Future Mobility ETF (NYSEARCA:KARS) is an international auto ETF, and that is an approach that makes sense given that some of the world's largest developing economies are massive polluters, but are looking to improve that situation by embracing electric vehicles.While KARS provides robust international exposure, it is a compelling option for investors looking to get more of a tech feel from an auto ETF. The fund allocates over 44% of its weight to U.S. stocks, many of which are well-known companies, such as Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA)."55% of new car sales and 33% of the global car fleet are projected to be electric by 2040," according to KraneShares. "The global electric vehicle market is projected to command $2.7 trillion of total investment before 2040."As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 5 Automobile ETFs That Could Rev Up appeared first on InvestorPlace.
The core inflation rate for August hits the highest level in a year while the overall annual consumer price inflation declines. These ETFs could be beneficiary of this trend.
Tesla Motors maintained its hottest streak following stellar fourth-quarter of 2019 results, wherein it easily topped earnings and revenue estimates. Additionally, the company guided an increase in 2020 deliveries from last year.
As U.S.-China trade tensions spike, these sector ETFs are in a vulnerable spot.
The U.S. auto industry is witnessing a slowdown with a decline in sales over the first six months of the year.
We highlight ETFs that can gain or lose with the beginning of trade talks between the United States and Japan.
These sector ETFs will be hurt the most if trade talks between the United States and China do not get through.
U.S. retail sales handily beat market expectations in June. Some particular industries have shone promises, putting these ETFs and stocks in focus.
The movements in these sector ETFs should be watched closely as the phase-1 trade deal is being signed and there is no tariff relief for a huge chunk of goods until phase-2.
We highlight some ETFs which can gain or lose in the wake of the latest round of attacks and retaliations in the Sino-US trade war.
November U.S. jobs data breezed past expectations and put the spotlight on these sector ETFs.
ETFs with big allocations to electric-car company Tesla were higher Friday, as it looks set to break an all-time record.
These ETFs should benefit if the USMCA deal sees the light of day soon.
The Trump administration is likely to have delayed new tariffs on Chinese imports and halved existing tariffs. These sector ETFs may soar on this.
Lately, auto stocks have presented some interesting opportunities. Specifically, let's take a look at what's happening off and on the price charts of Tesla (NASDAQ:TSLA), General Motors (NYSE:GM) and Nio (NYSE:NIO) and detail positions where bulls and bears can profit with increased odds of success.It has been anything but a quiet market of late. On Thursday, it was a tweet that sent the S&P 500 rallying 0.85% and finishing at a new all-time high. And auto stocks came along for the ride with the First Trust Global Auto Index (NASDAQ:CARZ) climbing 1.32%.From his favorite medium, POTUS teased investors by announcing that a Phase 1 trade deal with China was "very close." And in a rare twist, it turns out the tweet wasn't fake news. A limited trade deal between the world's two largest economies was reached after the close of the U.S. market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Worst Dividend Stocks of the Decade Now that levies are slated to have begun this weekend and existing tariffs are being rolled back on Chinese goods as part of a larger bilateral deal, surely it's time to park some money in auto stocks, right? It is. But, based on what the price charts of TSLA, GM and NIO stock are hinting at, there's profits to be made by both bulls and bears in auto stocks. Auto Stocks to Trade: Tesla (TSLA) Source: Charts by TradingViewThe first of our auto stocks is Tesla and it's a buy. The EV upstart went through a very difficult stretch earlier this year. But following the hard-hitting, corrective decline which landed TSLA stock into a band of longer-term Fibonacci support, shares have rebounded nicely since June. Over the last several weeks, shares have digested those gains in a constructive-looking consolidation high in the right side of its larger base near its all-time highs. Now shares are in position to be purchased after breaking out Thursday.Trading TSLA Stock: Buy this auto stock today. Expect new and meaningful highs to follow in 2020 given the healthy size base that's developed the last couple years. I'd set an initial price target at $450 for taking profits. To guard against downside exposure, a 10% stop is an effective way to eject safely in one piece from any potential bearish changes in TSLA stock's chart dynamics. General Motors (GM) Source: Charts by TradingViewThe second in our list of auto stocks is General Motors. This is a name I'd park in neutral with the expectation of buying in the near future. GM stock's monthly view shows that shares have been successfully holding lateral support within a larger uptrend for the last couple years. At the same time, since mid-2018, stochastics have been hinting of an upside resolution for bullish GM investors.Trading GM Stock: GM stock has already confirmed October's doji low last month before trading back inside the candlestick. It's a bullish signal, but obviously has turned more neutral given the price action. My suggestion is to wait for a second-attempt, trade-through entry above $38.29 before buying this auto stock. * 10 Best-Performing Growth Stocks of the 2010s Alternatively, if support continues to hold while a bullish crossover signals, a purchase of GM stock at lower levels is sufficient evidence to give a green light to buy shares on constructive-looking weakness. Nio (NIO) Source: Charts by TradingViewThe last of our auto stocks is China's Nio. Some Chinese stocks like Alibaba (NYSE:BABA) look great on the price chart. Others, such as Baidu (NASDAQ:BIDU), appear ready to turn the corner after coming under hard times of their own. But not NIO stock.Despite an alluring narrative, the price chart in NIO is still painting a bearish picture. Shares have rallied over the course of several weeks, but have now hit lateral, overhead resistance. What's more, a bearish topping candle on the weekly chart and overbought stochastics are warning new lows may be forthcoming.Trading NIO Stock: With confirmation of the bearish weekly pivot high in hand, NIO stock is technically worth shorting today. However, to gain exposure in this sub $2.50 auto stock and lower capitalization company, buying a limited and reduced risk bear put spread is the recommended and much smarter strategy.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post 3 Auto Stocks to Trade, 2 Buys and 1 Short appeared first on InvestorPlace.
The U.S. House of Representatives passed the USMCA deal, which is now likely to be approved by the Senate. The deal could make or break these ETFs.
The month of October saw a tepid rebound in U.S. retail sales. Though this indicates a somewhat shaky start to holiday season buying, these ETFs should sill benefit.
Here we analyze the performance of certain ETFs with exposure to some major U.S. automobile industry players post their earnings release.
Though auto sales dipped 1.3% in 2019, automakers hit the 17 million sales mark for the fifth straight year, buoyed by cheap credit, low unemployment and healthy consumer sentiment.
These sector ETFs offer good entry points in a pricey market.