BlackRock has launched an exchange traded fund (ETF) that taps into the growing global emphasis on sustainable energy sources in transportation, at a time when investors are looking to build portfolios that better reflect their personal views regarding Environmental, Social and Governance (ESG) factors.
Today there are 1.1million electric vehicles sold every year, by 2040 this figure is expected to rise to 60 million*. Transport accounts for around a quarter of CO2 emissions globally and increasingly stringent regulations are being utilised in the global fight against climate change**. This presents an opportunity for investors to access companies across the electric vehicle value chain as their popularity grows.
The iShares Electric Vehicles and Driving Technology UCITS ETF (ECAR) seeks to provide exposure to this opportunity, complementing BlackRock’s existing 16 thematic products, and 27-strong range of ESG ETFs aimed at providing investors with choice for building future-proof portfolios and align with their individual long-term goals.
ECAR tracks the STOXX® Global Electric Vehicles & Driving Technology Index comprising of companies involved in manufacturing, battery suppliers and component producers and has a Total Expense Ratio (TER) of 0.40%.
Rob Powell, Lead Strategist, iShares Thematic Investing at BlackRock, comments: “We are on the cusp of another huge leap in the way we get from A to B, as the irreversible trend towards electric vehicles unfolds. And beyond the vehicle manufacturers, producers of battery technology, autonomous vehicle components and charging infrastructure will all benefit from this revolution in transportation.
“Thematic investments, such as ECAR, can help investors seek long-term growth while expressing a view on the innovative companies that will shape the global economic future.”
*Source: BlackRock and Bloomberg New Energy Finance estimates, July 2018
**Source: International Energy Agency 2018.
About BlackRock
BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the
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December 31, 2018, the firm managed approximately $5.98 trillion in assets on behalf of investors
worldwide. For additional information on BlackRock, please visit www.blackrock.com
About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than
twenty years of experience, a global line-up of 800+ exchange traded funds (ETFs) and $1.7 trillion in
assets under management as of December 31, 2018, iShares continues to drive progress for the
financial industry. iShares funds are powered by the expert portfolio and risk management of
BlackRock, trusted to manage more money than any other investment firm1
.
1 Based on $5.98 trillion in AUM as of 12/31/18