Report post

Is Carz the last traditional auto ETF?

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.

Is carz a pure-play Auto ETF?

That's because CARZ, the closest thing to a pure-play auto ETF, recently changed its investment objective and is now less focused on the industry. The auto industry outperformed the broader market over the past year. The closest thing to auto exchange-traded fund (ETF) are two funds: CARZ and VCAR.

Is carz a good ETF?

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.

The World's Leading Crypto Trading Platform

Get my welcome gifts