Rapid innovation in the sector is disrupting the ways we live and work and piquing investor interest in artificial intelligence.

However, it can be difficult to sift through the noise, headlines and misinformation. This is especially relevant when an industry is rapidly developing and changing. 

A new report from Global X has shed light on how to stay ahead of the curve. 

The rapidly evolving world of AI 

In the latest report from Global X, the ETF provider reinforced the difficulty of pinpointing where within a theme or industry to allocate resources. 

Global X said this could be upstream or downstream, in small-cap disruptors or established players, or emerging markets.

The challenge lies in cutting through the noise to distinguish transformative developments from those that may be overhyped.

The DISRUPT framework

Global X has developed an investment strategy to help pinpoint opportunities in the AI sector. 

According to Global X, the DISRUPT Framework evaluates seven key criteria: disruption, innovation, scalability, resilience, uptake, potential, and transformation. 

Together, these elements combine to create a detailed picture of a specific innovation. It also offers insights into lifecycle stage, market dynamics, and optimal investment opportunities.

The opportunity – AI and Automobiles 

The DISRUPT framework shows that AI in Auto is highly advanced in disruption and innovation. This is supported by strong adoption, improving scalability, and meaningful long-term economic potential. 

The technology is already embedded across global OEMs and EV makers, while partnerships between chip suppliers, cloud providers, and autonomy developers continue to deepen. 

AI now influences how cars are designed, manufactured, operated, and updated, with applications spanning smart cockpits, fleet optimisation, predictive maintenance, and assisted driving.

According to Global X, this creates a broad and investable opportunity set across the automotive value chain. 

The ETF provider said the strongest opportunities lie in the midstream where AI capability is already central to model design and production. 

Semiconductors, sensors, vehicle compute, simulation engines, and software stacks are scaling across the US and China in particular, with Korea and Japan strengthening through component and manufacturing leadership. 

These layers benefit from rising global AI penetration and tend to outperform downstream OEM exposure, which remains more sensitive to regulation, competition, and pricing.

How to gain exposure?

For investors wanting to gain exposure to these themes, there are targeted ASX ETFs that aim to track relevant companies. 

For broad exposure to AI companies, investors might consider the Global X Ai Infrastructure ETF (ASX: AINF).

It provides targeted exposure to this growing opportunity through a concentrated and equally weighted portfolio of companies across energy, materials and data infrastructure.

Another AI focussed ETF is the Global X Artificial Intelligence ETF (ASX: GXAI). 

It targets companies that potentially stand to benefit from the further development and utilisation of artificial intelligence (AI) technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data.

For exposure to the electric vehicle sector, investors may consider the BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV). 

It provides exposure to a portfolio of global companies at the forefront of innovation in automotive technology.

The post Which AI themes should investors be targeting in 2026? appeared first on The Motley Fool Australia.

Now, on one hand, that's great for investors as there is almost certainly something for everyone. 

However on the flip side, it's simply impossible to stay across every single company. 

Exchange traded funds (ETFs) can be a great answer for this, as you can capture a market or sector with just one trade. 

Increasingly, new ASX ETFs are becoming available with more niche focuses. 

This is referred to as thematic investing.

With that in mind, here are three examples of niche ASX ETFs you might not have considered. 

Betashares Nasdaq Next Gen 100 Etf (ASX: JNDQ)

The NASDAQ-100 Index (NASDAQ: NDX) is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange.

Generally, this index is referred to as the companies that represent the new economy. 

This ASX ETF from Betashares aims to target the 100 largest Nasdaq-listed non-financial companies by market capitalisation outside of the Nasdaq-100 Index. 

Ultimately, it provides exposure to a collection of innovative companies with the potential to become tomorrow's leaders in sectors including technology, healthcare and industrials.

Examples of leading companies that graduated from the Nasdaq Next Generation 100 Index to the Nasdaq-100 include Tesla, Netflix. 

According to Betashares, many of the companies in JNDQ's Index are at a relatively early stage of their development. JNDQ provides exposure with meaningful weightings to companies having potential for significant growth.

This fund could be ideal for investors who want to target the next generation of blue-chip US stocks.

Additionally, it rose almost 9% last year. 

BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV)

First available in late 2021, this fund provides exposure to up to 50 of the world's leading automotive technology companies. 

These are companies at the forefront of innovation in automotive technology. 

Within the fund, it has its largest exposure to:

• Automobile Manufacturers (32.1%)
• Construction & Transport Machinery (22.4%)
• Automotive Parts & Equipment (16.1%)
• Semiconductors (14.8%)

Furthermore, this was a winning formula in 2025, with the fund rising by almost 18%. 

BetaShares Cloud Computing ETF (ASX: CLDD)

As the name suggests, this fund provides exposure to leading companies in the global cloud computing industry, and it has been available on the ASX since 2021.

It is currently made up of 37 holdings, with approximately 87% of the fund being US based companies.

These companies are involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services on the internet. 

Finally, it is worth noting this fund has faced considerable volatility since first listing.

The post 3 niche ASX ETFs you didn't know existed appeared first on The Motley Fool Australia.

The resurgence has been fuelled by robust global EV sales this year, which are up 30% compared to the same period in 2024, according to the Financial Review, citing Canaccord Genuity data.

The new demand level is underpinned by 32% growth in China, where strong competition between domestic car makers is lowering prices. In Europe, EV sales have also jumped 26% this year. 'Rest of World' accounted for 41% of the growth, offsetting flat sales growth in North America.

Canaccord Genuity had previously forecast a "likely slow-down" in global electric vehicle sales in 2025, due to tariffs, policy changes, and economic uncertainty. 

The brighter outlook for EV sales has coincided with signs that lithium miners are finally starting to curtail output, particularly in China as the government cracks down on overcapacity across commodity markets, the Financial Review said.

Depressed prices have forced many companies globally to close lithium mines, reduce capital expenditure, and delay project expansions.

So, is it time to buy an EV-focused ASX ETF?

Data suggests that a record number of consumers are attracted to the advantages of EVs, which include lower running and maintenance costs, and environmental benefits like reduced air pollution.

As demand for EVs continues to soar, many investors might also be thinking of ways to gain exposure to the EV sector. 

Here are two options they can consider.

Australian investors can buy individual shares on the NASDAQ in EV companies such as Tesla (NASDAQ: TSLA).

Tesla is well-known for its electric cars – like the Model S, Model 3, Model X, and Model Y – which helped revolutionise the EV market. Tesla's share price is 46.25% higher over the year, currently changing hands at US$325.90 a piece. 

Another option for Australian investors to gain diversified access to the EV market is via the exchange-traded fund (ETF) BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV).

The ETF invests in 50 of the world's leading automotive technology companies. It charges an annual management fee of 0.67%. As of 28 July, its top five holdings were Volvo AB (8.2%), Tesla (7.6%), BYD Co (7.2%), Paccar (6.8%), and Daimler (5.5%).

This ASX ETF also has allocations in other EV-related sectors, such as battery manufacturers, semiconductor suppliers, and charging infrastructure providers.

The BetaShares Electric Vehicles and Future Mobility ETF share price is changing hands 0.52% lower at lunchtime today, at $9.58. Over the year, the share price is 16.4% higher.

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Ever since Elon Musk entered the political arena, there's been a lot of attention on EVs. 

And lately, Elon Musk's company Tesla Inc (NASDAQ: TSLA) has been just about as controversial as it gets. To protest Elon's political involvement and right-wing affiliation, progressive voters have been offloading their vehicles in record numbers. 

On Thursday, the US House of Representatives sent a bill to US President Trump's desk that eliminates tax credits of up to $7,500 for EV customers. This tax credit had originally been part of the 2022 Inflation Reduction Act, which was former President Joe Biden's legislation. 

This incentive had aided the EV market by making the cars more affordable. Repealing them is likely to negatively affect EV sales.

However, according to Bloomberg:

The Trump administration's plan to scrap federal incentives for electric vehicles will be a major speed bump for battery-powered transportation in the US, but not a brick wall.

Is the EV market attractive?

Despite the slowdown in the US, Bloomberg expects electric vehicle sales to continue growing globally. Consumers are being drawn to the benefits of EVs, including running costs and maintenance, as well as environmental advantages such as less air pollution.

According to the International Energy Agency, global EV sales continue to grow at a healthy rate. Global EV sales surpassed 17 million in 2024, representing around 20% of new vehicle sales. This represented a 25% increase from 2023. 

Former General Motors economist and current Harvard University's Salata Institute for Climate and Sustainability expert expects 37% of new cars bought in 2030 to be electric. 

Evidently, despite the controversies surrounding the sector, EV adoption is projected to remain robust for the next 5 years.

How to invest in the EV sector?

Australian investors have two options when it comes to investing in electric vehicles. 

They can buy individual shares. For example, Tesla is listed on the NASDAQ exchange. Despite being one of the most controversial companies out there, Tesla shares are up around 25% over the past year and nearly 300% over 5 years. 

For more diversified exposure to the EV market, ASX investors can buy the BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV), which invests in 50 of the world's leading automotive technology companies. It charges an annual management fee of 0.67%, and as of 30 May, its top five holdings were Tesla (8.9%), Volvo AB (8.3%), BYD Co (8.1%), Paccar (6.8%), and Volkswagen (5.3%).

The post Are electric vehicle stocks a good investment today? appeared first on The Motley Fool Australia.

According to the International Energy Agency's latest edition of the IEA's annual Global EV Outlook, global EV sales exceeded 17 million in 2024. This represented a 17% increase year-over-year. 

As a result, EVs' share of the global market exceeded 20% for the first time on record. In the first quarter of 2025, EV sales increased 35% year-on-year. 

The standout market was China, with EV sales accounting for more than half of all cars sold in 2024. Emerging markets in Asia and Latin America also experienced significant uptake, with EV sales across these regions increasing 60% in 2024.

In Australia, 100,000 EVs were sold in 2024. This represented 10% of new cars sold. The Electric Vehicle Council estimates there are now over 300,000 EVs on Australian roads.

Meanwhile, the US was the biggest laggard. EV sales increased by just 10% in 2024. As reported by The Australian, IEA also cut growth forecasts for this market. EVs are now expected to account for 20% of US car sales by 2030, less than half the estimate in last year's report.

Is this an opportunity for investors?

Evidently, a record number of consumers are being drawn to the benefits of EVs. These include lower running costs and maintenance, as well as environmental advantages such as less air pollution. 

Investors may also see growth in the EV market as an opportunity. Fortunately, ASX investors can participate in the EV sector through the exchange-traded fund (ETF) BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV).

For a management expense of 0.67%, the DRIV ETF provides exposure to up to 50 of the world's leading automotive technology companies. It allows investors to back the EV theme without having to pick a winner. As of 14 May, its top five holdings were Tesla (8.5%), Volvo (8.3%), BYD (8.2%), Paccar (6.7%), and Volkswagen (5.5%).

It is geographically diversified, with 32.2% holdings in the United States, 25.2% in China, 14.8% in Germany, and the remainder across several other countries.

How has DRIV ETF performed?

DRIV ETF made its debut in 2021. After surging dramatically the day it listed, it has been relatively flat since then. 

However, those who invested a month ago are already up nearly 15%, significantly outpacing the S&P/ASX 200 Index (ASX: XJO), which has risen around 7% over the same period. 

The DRIV ETF could be one to keep an eye on.

The post Global EV sales were up 17% in 2024. Time to consider an EV focused ETF? appeared first on The Motley Fool Australia.

From artificial intelligence (AI) and robotics to electric vehicles and clean mobility, entire industries are being reshaped in real time.

If you're looking to ride the next wave of innovation, a few carefully chosen ASX ETFs could give you exposure to some of the biggest trends shaping the future. Here are two standout options to consider:

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Artificial intelligence and automation are no longer just buzzwords — they're actively transforming the way we work, live and interact with the world. The BetaShares Global Robotics and Artificial Intelligence ETF gives investors access to a global portfolio of companies leading the AI and robotics revolution.

This includes major names like Nvidia (NASDAQ: NVDA), whose chips power the AI boom, alongside innovators in healthcare, engineering, and manufacturing that are integrating automation into their core operations. From robotic surgery to smart logistics, the applications are expanding rapidly.

For investors looking for exposure to a high-growth, high-impact theme, the BetaShares Global Robotics and Artificial Intelligence ETF could be a forward-looking addition to a long-term portfolio.

BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV)

The future of transport is electric, and the shift is happening faster than many expected. The BetaShares Electric Vehicles and Future Mobility ETF offers exposure to companies at the forefront of electric vehicles (EVs), autonomous driving, and clean mobility solutions.

While headline names like Tesla (NASDAQ: TSLA), BYD, and Rivian (NASDAQ: RIVN) grab the spotlight, this ASX ETF also includes the essential building blocks of the EV ecosystem — including battery manufacturers, semiconductor suppliers, and charging infrastructure providers. These are the businesses powering the transition away from petrol and diesel.

With governments ramping up support for low-emissions transport and automakers committing billions to electrification, the long-term growth runway for this sector is significant. BetaShares Electric Vehicles and Future Mobility ETF provides a diversified way to tap into the entire value chain of this once-in-a-generation transformation.

Foolish takeaway

You don't need to predict which single company will become the next tech titan. With ASX ETFs like the two above, investors can access broad exposure to tomorrow's most important technologies — today.

Whether it's artificial intelligence reshaping industries or electric vehicles redefining how we move, these funds offer a simple and effective way to invest in the future.

The post Invest in future technology with these exciting ASX ETFs appeared first on The Motley Fool Australia.

The good news for investors is that there are ASX ETFs out there that allow investors to easily focus on specific themes that are shaping the future.

This includes artificial intelligence (AI), cloud computing, and the shift to electric vehicles (EVs).

For example, here are three ASX ETFs that could help investors ride these game-changing trends.

Betashares Cloud Computing ETF (ASX: CLDD)

The world is moving to the cloud. From businesses running software applications to consumers streaming content, cloud computing underpins much of our digital activity. Yet, despite its rapid growth, a significant portion of the world's software and data is still hosted on traditional infrastructure. That's expected to change.

The Betashares Cloud Computing ETF provides exposure to global leaders in cloud computing, including Snowflake (NYSE: SNOW), Twilio (NYSE: TWLO), and Shopify (NYSE: SHOP). These companies are not just benefiting from the cloud transition—they're shaping it. As enterprises continue shifting towards scalable, flexible, and cost-efficient cloud solutions, demand for their services is expected to surge.

Cloud computing isn't just a trend, it is the foundation of the digital economy. This ASX ETF offers a simple way to invest in this unstoppable force.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Artificial intelligence and robotics are no longer the stuff of science fiction—they're transforming our lives today.

From self-driving cars to automated warehouses, companies are increasingly turning to AI-driven solutions to improve efficiency, cut costs, and enhance decision-making.

This ASX ETF provides exposure to a global portfolio of companies leading the charge in AI and robotics, including NVIDIA (NASDAQ: NVDA), Intuitive Surgical (NASDAQ: ISRG), and Keyence. These businesses are developing the chips, software, and machines that power everything from medical robotics to industrial automation.

As AI becomes more sophisticated and automation reshapes the workforce, companies at the forefront of these innovations could see massive long-term growth. For Aussie investors that are looking to capitalise on this trend, the Betashares Global Robotics and Artificial Intelligence ETF could be the way to do it.

BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV)

Finally, the way we move is also changing. Governments worldwide are pushing for lower emissions, and automakers are responding with massive investments in EVs and autonomous driving technology. The EV market is forecast to grow exponentially over the next decade, and this ASX ETF provides investors with an easy way to invest in this transformation.

The BetaShares Electric Vehicles and Future Mobility ETF's holding include Tesla (NASDAQ: TSLA), BYD, and Rivian (NASDAQ: RIVN) —some of the most innovative players in the EV space. But it's not just about car manufacturers. This fund also includes businesses supplying key EV components, such as semiconductor producers and battery makers.

With traditional automakers shifting their focus away from petrol and diesel, and governments ramping up incentives for EV adoption, the transition to clean transport is picking up speed. This bodes well for the companies in this ASX ETF.

The post Try thematic investing with these 3 ASX ETFs appeared first on The Motley Fool Australia.

Firstly, there are no EV companies on the Australian share market, so local investors have to look further afield for options.

Secondly, between Tesla's (NASDAQ: TSLA) market leadership, China's rising EV giants, and traditional automakers ramping up their electrification efforts, there's no shortage of contenders outside Australia.

If you're struggling to decide which company to back, the BetaShares Electric Vehicles and Future Mobility ETF (ASX: DRIV) could be the perfect solution.

A booming market

The global EV market is projected to generate a staggering US$784.2 billion in revenue in 2025, according to Statista. With a compound annual growth rate (CAGR) of 6.01%, the market is expected to hit US$990.4 billion by 2029. By then, annual EV unit sales could reach 17.36 million vehicles.

China is leading the charge, with its EV market projected to generate US$377 billion in revenue in 2025. Norway, meanwhile, continues to set the benchmark for EV adoption, with electric cars making up the vast majority of new vehicle sales.

Given these tailwinds, exposure to the EV sector could be a smart long-term investment. But rather than trying to pick individual winners, the BetaShares Electric Vehicles and Future Mobility ETF offers broad exposure to up to 50 of the world's leading automotive technology innovators.

What shares are included in this ASX ETF?

The BetaShares Electric Vehicles and Future Mobility ETF isn't just about EV manufacturers. The fund also includes companies driving the future of mobility, such as semiconductor firms, battery producers, and autonomous vehicle technology developers.

Here's a look at some of the major players in the fund:

Tesla

Tesla is a global leader in EVs and up until recently it was selling more electric cars than any other company. It continues to expand its production capacity, lower costs, and develop cutting-edge technology, including full self-driving (FSD) software and next-gen battery innovations.

BYD

BYD is a high-tech company that overtook Tesla last year to become the largest seller of electric vehicles in the world. Warren Buffett was an early investor in the China-based giant. It is the ASX ETF's largest holding at present.

NIO (NYSE: NIO)

Often called the "Tesla of China," NIO is a fast-growing EV maker known for its battery-swapping technology and premium electric SUVs and sedans. China's EV market is booming, and NIO is positioning itself as a key player.

Aptiv (NYSE: APTV)

Aptiv is a leading supplier of automotive technology, including advanced driver assistance systems (ADAS) and vehicle connectivity solutions. As cars become smarter and more autonomous, Aptiv's technology is likely to play a crucial role.

Volvo (STO: VOLV-B)

The Swedish automaker is rapidly transitioning to an all-electric future. Volvo plans to become a fully electric car brand by 2030, with a focus on safety, sustainability, and premium EV offerings.

Foolish takeaway

BetaShares Electric Vehicles and Future Mobility ETF provides exposure to the long-term growth of electric vehicles, autonomous driving, and future mobility trends.

Rather than betting on a single EV stock, this ASX ETF offers diversification across key players in the industry, from automakers to semiconductor suppliers.

As the transition to EVs accelerates and demand for smarter, cleaner transportation grows, this fund could be a great way to gain exposure to this exciting sector.

The post Can't decide which electric vehicle company to back? Check out this ASX ETF appeared first on The Motley Fool Australia.

Since that date, the Betashares Electric Vehicles ETF has dropped from around $12 a unit to the $9.03 it is commanding today (at the time of writing). That puts it down by just over 25% since inception, and a nasty 27% or so in 2022 thus far.

But electric vehicles (EVs) are the future, right? So why is this ETF been so dramatically put on struggle street over its relatively short life?

Well, electric vehicles are certainly making waves right now. According to a report in The Age over the weekend, EVs already make up between 10 and 20% of new car sales in many European countries. In Norway, nearly two-thirds of new cars sold last year were EVs.

We all know that EV sales are rising and are almost certainly going to keep rising, thanks to growing mandates around the world forcing vehicle manufacturers to 'go electric'.

So what gives with the BetaShares Electric Vehicles and Future Mobility ETF?

Why has the BetaShares Electric Vehicles and Future Mobility ETF taken a wrong turn?

Well, it pays to remember that an ETF can only be valued on one thing: the value of the underlying shares the fund holds in its portfolio.

So let's check out what's under the hood of the BetaShares Electric Vehicles ETF.

According to the provider, this ETFs current top five holdings are as follows:

1. Uber Technologies
2. Tesla Inc
3. Paccar Inc
4. Volkswagen AG
5. Nio AG

Investors might also recognise some other names there too, such as BYD Co, Volvo AG, Rivian Automotive, and Samsung.

So let's see how this ETF's largest holdings have been faring in 2022 thus far. For a start, Uber shares have lost a painful 27.7% year to date. Tesla shares are down 25.07%, while Paccar is flat. Volkswagen shares have lost more than 18.5%, while Nio has tanked 42.75% (despite rising 8.4% last Friday).

So with so much red ink in the BetaShares Electric Vehicles and Future Mobility ETF share portfolio, it's no wonder this ETF has been struggling over the year so far. Even though a company might be participating in a growth industry, it doesn't mean its share price can't take a meaningful hit.

These kinds of shares will probably need to make a dramatic turnaround if investors in this ETF are to see a reversal of fortune.

The BetaShares Electric Vehicles and Future Mobility ETF charges a management fee of 0.76% per annum.

The post Why has the BetaShares Electric Vehicles and Future Mobility ETF lost 27% in 2022? appeared first on The Motley Fool Australia.

So at the time of writing, DRIV units have debuted at $11.78 per unit and are currently trading at $11.79, up a solid 0.08% after their first few hours of ASX life.

So we took a quick look at DRIV a few days ago when it became clear this ETF was headed for the ASX boards. But if you missed that coverage, here's a quick refresh. So BetaShares tell us that this ETF is designed to track the Solactive Future Mobility Index. This will, in the provider's words, give "exposure to a portfolio of global companies at the forefront of innovation in automotive technology". It holds 50 companies right now.

DRIV comes off the ASX line

Its top 10 holdings, and weightings, are as follows:

1. Tesla Inc (NASDAQ: TSLA) with a portfolio weighting of 9.5%
2. Nio Inc (NYSE: NIO) with a weighting of 6.4%
3. Aptiv plc (NYSE: APTV) with a weighting of 6.4%
4. Uber Technologies Inc (NYSE: UBER) with a weighting of 6.1%
5. Volkswagen AG with a weighting of 5.6%
6. Volvo AB with a weighting of 4.7%
7. Paccar Inc (NASDAQ: PCAR) with a weighting of 4.4%
8. BYD Co Ltd with a weighting of 4.2%
9. Li Auto Inc with a weighting of 3.9%
10. Xpeng Inc (NYSE: XPEV) with a weighting of 3.6%

So as you can see, many famous names there. At the top of the pile, we have the well-known electric vehicle manufacturers Tesla and Nio. Nio is a giant Chinese company often called the 'Tesla of China'.

Aptiv is a US auto parts company, while Uber is of course the eponymous ride-sharing provider.

Volkswagen and Volvo need no introduction as conventional vehicle brands, while Paccar is a manufacturer of diesel trucks with brand names like Kenworth and Peterbilt.

BYD, Li Auto and Xpeng are all Chinese companies with expanding electric vehicle manufacturing operations.

Geographically, DRIV is weighted 44% towards US companies and 20.3% towards Chinese companies. Germany, Ireland, Europe, Japan and South Korea make up the vast majority of the rest.

Although this DRIV ETF only makes its ASX debut today, the index that it tracks has reportedly returned an average of 23.5% since its inception in May 2017.

The BetaShares Electric Vehicles and Future Mobility ETF charge a management fee of 0.67% per annum (or $67 per year for every $10,000 invested).

The post Meet DRIV (ASX:DRIV), the electric vehicle ETF that just listed on the ASX appeared first on The Motley Fool Australia.