The Direxion ETF provides 200% exposure to the electric and autonomous vehicles industry.

ETF issuer Direxion announced the launch of the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares ETF (EVAV) that benchmarks 200% of the daily performance of the Indxx US Electric and Autonomous Vehicles Index. Accordingly, it invests in 25 U.S.-listed companies poised to disrupt the existing transportation market by bringing new and cleaner modes of transportation, such as electric and autonomous vehicles. Charging station manufacturers, such as ChargePoint and Blink; companies involved in software development and the manufacturing of various electrical components; as well as electric vehicle manufacturers such as Tesla (NASDAQ: TSLA), Lucid (NASDAQ: LCID), and NIO (NYSE: NIO) are all included. (CISION PR NEWSWIRE)

The ETF has a gross expense ratio of 1.09% and a net expense ratio of 1.07%.

Market projections show that an expected 66 million electric vehicles will be added in the next two decades, while about 33 million autonomous cars would be on the road by 2040.

A $369 billion climate and tax proposal in the Senate in late July, 2022 by Sens. Joe Manchin (D-W.Va.) and Chuck Schumer (D-N.Y.), called the Inflation Reduction Act, will boost these numbers further.

“With the Senate passage of the Inflation Reduction Act, the market is looking at the electric and autonomous vehicle sector with fresh eyes given the prospect of long-term government support,” said Direxion Managing Director and Head of Sales and Alternatives, Edward Egilinsky. “These stocks can be volatile in nature, and thus EVAV may be a utilized as a trading tool for those active traders looking to take advantage of short-term price swings.”

Direxion Managing Director and Head of Product, Dave Mazza said: “EVAV allows traders to take an amplified bullish position on electric and autonomous vehicles, along with the infrastructure to support them.”

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