With oil prices plummeting, it’s reasonable to expect that some advisors and investors are pondering whether slumping crude bodes ill for electric vehicle adoption and ETFs such as the ARK Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ).
Known in part for being one of the ETFs with the largest weights to Tesla (NASDAQ: TSLA), ARKQ captures the converging industrial and technology sectors, capitalizing from autonomous vehicles, robotics, 3D printing, and energy storage technologies. That wide mandate helps lever the ARK fund too much more than just self-driving cars, an important trait at a time of rapid robotics advancements.
With a 13% weight to Tesla, ARKQ is indeed levered to the electric vehicle trend, but investors may not need to fret over lower oil prices affecting the ARK fund. In fact, that question may miss the market altogether.
“While investors are asking if electric vehicle (EV) sales will fall