CARZ
First Trust S-Network Future Vehicles & Technology ETF
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Investment strategy - Eggs in one basket?
Thinking of putting my $25,000 in cash into 3 different ETFs.
A couple of hypotheticals about a private individual investing on a relative's behalf, without professional financial advisors or dependency
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CARZ is up 120% since I bought it.
That if it was mostly index funds. I wanna see how my spending habits perform - more of a fun little "experiment". Like spent $50 at Dollar Tree and got 5% back using PayPal and Discover quarterly bonus? $50 x 3% = $1.50 worth of DLTR purchased. Like I had to spend on car repairs recently and bought the CARZ etf since it was a broad "index".
Are there any car industry ETFs besides CARZ that hold overseas manufacturers? Ie Toyota, Kia, VW etc etc.
Look at ETFs BATT, LIT, COPX, DRIV, CARZ, IDRV and stock LAC.
I know there is aggregated data on this topic, but I am going for timing the market right now. When Biden was elected I took my gains and sidelined them and cashed out. May experts will shout, "Oh my gosh, keeping money in cash, you're and idiot, opportunity cost, inflation, yahdah yahdah yahdah." My theory is that the people who scream, "Stay in the market! Don't time the market" are people who move money in and out like madmen. They want YOU to keep your money in the market to create stability, because if everyone took their money out it would trigger the Wall Street Bots to momentum sell and tank the stock/market. They want the freedom not to be the bag holders while your money creates stability. If we look at the investing universe right now. * Inflation * COVID is back in China with mandatory lockdowns killing the supply chain * Putin and the fascists are working to create global energy and food shortages with their stupid wars, we'll probably see famines in poor countries next year. Someone just needs to punch Putin in the face. * The US Fed is going to have to raise interest rates * Home loan lending is back to 2008 standards and there will be another housing collapse soon * The threat of a looming recession * Sanctions against Russia and impacts to American companies * Slowing cell phone sales * Manufacturing output is pathetic due to supply chain issues, just try to buy a car The biggie that I see is that when the Fed raises interests rates it it going to trim jobs from the market and depress wages and purchasing power. So knowing this, you could start dollar cost averaging into energy and raw materials like copper/nickel/Lithium ETFs. Or know that at some point people are going to have to buy new cars again and invest in car suppliers and manufacturers. Or you could (possibly) wait until summer when a massive market correction might occur and buy back in at the bottom. I think timing this next crash is going to mint a lot of millionaires. Alternately, you could just dollar cost average into the ETFs VOO QQQ CARZ which will most likely outperform any investigating strategy you or Warren Buffet could devise. Just looking at the market, I think the valuations are insane and that the market is going to correct by a lot as inflation starts to sponge up all the play money propping up the market. I am going to wait until the DOW gets below 30,000 before I start moving back in. I am thinking summer, but I could be wrong. Alternately, market volatility is crazy right now, and if you are willing to day trade index funds you might do great, until the correction. Note: I am not a financial advisor, just an idiot that has been watching the market for awhile.
Trading app Public has CARZ listed
An index fund like VOO simply buys whatever stocks are in the index in the same percentages as in the index. Standard and Poor's publishes a weighted index of the 500 biggest US companies and calls it the S&P 500. An index fund manager just buys the stocks in the S&P 500 in the same percentages. It doesn't take much work or analysis to do that so the management fees (expense ratio) are very low. An actively managed fund tries to outperform "the stock market" as represented by the S&P 500 by picking and choosing stocks to hold. They may buy stocks that aren't in the S&P 500. It takes a team of managers and analysts to decide which stocks to buy and hold, and they cost money. That raises the management fees (expense ratio). If they outperform the index by more than the expense ratio then you are better off than you would be buying an index fund. Most actively managed funds fail to consistently outperform the S&P 500. That's why so many people here recommend passively managed index funds. However, some fund managers were/are able to consistently outperform the S&P 500. Peter Lynch did when he managed the Fidelity Magellan mutual fund. The CARZ ETF loosely tries to follow an index, and that takes less analysis and management so it is somewhere between a passively managed index fund and an actively managed fund. That's why its expense ratio is lower than a typical managed fund but higher than a pure index. >The investment seeks investment results that **correspond generally** to the price and yield (before the fund’s fees and expenses) of an index called the S-Network Electric & Future Vehicle Ecosystem Index.The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depository receipts that comprise the index. The index includes companies engaged in the manufacture of electric and autonomous vehicle manufacturing as well as the production of products, technologies and materials that enable the development of electric and autonomous vehicles. So CARZ isn't invested in the auto industry broadly. It is focused on manufacturers of electric and autonomous vehicles.
An expense ratio of 0.70% isn't bad at all for a managed fund. Anything under 1% is actually pretty good for a managed fund. You can't compare the expense ratio of a managed fund to the expense ratio of an index fund. Apples and oranges. If you use a brokerage like Fidelity that offers fractional share trading you could clone CARZ by buying automobile stocks in the same proportion as their holdings: Ford Motor Co 9.85% Toyota Motor Corp 8.64% GM 8.39% Tesla Inc 7.18% Daimler AG 6.99% Porsche Automobil Holding SE 4.78% Volkswagen AG Participating Preferred 4.53% Bayerische Motoren Werke AG 4.39% Kia Corp 4.20% Hyundai Motor Co 4.18% Honda Motor Co Ltd 4.16% Nissan Motor Co Ltd 4.14% Subaru Corp 3.87% Suzuki Motor Corp 3.76% Geely Automobile Holdings Ltd 3.32% BYD Co Ltd Class H 3.13% Great Wall Motor Co Ltd Class H 2.88% Renault SA 2.74% Mazda Motor Corp 1.83% Guangzhou Automobile Group Co Ltd Class H 1.02% Shares of some of the foreign companies might not be available in the US but many are. If you get most of them in the proper proportions it should be close enough.
Wanting to invest in the auto industry broadly. CARZ does this, but the expense ratio is borderline predatory by today's standard. Any other options here?
How did I not know CARZ was a thing?
Yes, I only look at the top 10. ICLN is clean energy, XLF is banking, IXJ is healthcare, NOBL for dividends, SCHH for reits/storage/land, CARZ for auto, some of them overlap but then again, I’m not investing in all of them every time, only the beaten up sectors, example if auto industry is down big, It would reflect more on in CARZ but not XLF, so I’d put majority of Cash into CARZ to dollar cost average, then invest a little into the rest of the ETFs.
There is too much risk and uncertainty to pick up car manufacturer company. We have CARZ etf, but I doubt will beat up general index. Would rather invest in companies like qualcomm, ams ag... semiconductors which will boom from EV. Cause with batteries companies play is more unsure.
SEX, DRUGZ AND.............. RENTAL CARZ!!!!!!!???? ​ yeah son.... I LIVED!!!!!!!
VTI is the backbone for mine too but I also have VXUS for the foreign exposure. My portfolio looks like this: 50% in VTI and 25% in VXUS. Now you can pretty much do whatever you want with the remaining 25%. I like to play the seasons with that remainder. Since winter is coming up along with the holiday seasons I reckon FDIS, VDE, and VPU will do quite well. Thinking about selling those in late winter and investing about 20% into FTEC and CARZ.
Just looked at the CARZ etf , investing in 2019 would of quadrupled by now. Debating on whether to check back in a few months see if it's fallen from it's ATH. But I've been seeing a lot of new releases about companies like Ford investing more in electric vehicles to compete with Tesla. So maybe now's the time to get in before things really go off. Decisions decisions lmao
Buy automotive ETFs while shorting TSLA ? Not sure in which proportion, but in worst case if Tesla EV continue growing, you should still make money. I assume -10% TSLA and +100% CARZ. https://finance.yahoo.com/news/5-automobile-etfs-could-rev-173053847.html
Didn't know about the CARZ etf! Cool. Will track that. I already have the vast majority of my investments in broad market and major sectors ETFs... over 90%. This is purely fun money... buying ETFs isn't what I would consider fun tho... this is more to make some stock trades here and there and see if I can actually pull off higher returns in the next year. It's more about learning, I started investing 6 months ago and I take little baby steps here and there to add to my knowledge. This is only the third stock I've bought (I went with Tesla), but will sell a little bit of ETF for Ford, it will only be about 2.5% of my portfolio. Really just for the experiment.
I recommend a broad-based market index fund or etf, like SPY or VTI. But with fun money, and given the choice, I'd buy the CARZ etf and get both F and TSLA.
ARKK is squirrelly. Better if you look through its holdings and drop the overvalued ones. Ironically the most overvalued is also its biggest holding, and is the biggest in CARZ, as well, so you should tailor that, too.
You are trying to swing and hit a homerun with CARZ, if fossil fuel still go 15 more years strong, your etf will never see gains. You are chasing a big jump like some people buying weed etfs and biopharma. Don't try to hit a homerun.
CARZ is a specialty etf. If for aome reason that specific area or market doesn't do what you think you will loose money. A good friend of mine in december 2019 dump a loooot in JETS, 2 months after the airlines crashed in 2020, he is down by a lot % since then, stock in a JETS etf God knows until when. You think EV is the best place to be....good for you. Get QQQ, if your EV dream happens, NVDA, AAPL,TSLA are in QQQ and will be leading the EV industry for sure. Don't bet on specialty, sectors, regions etfs. But is my opinion.
VOO - Thumbs up! ARKK - I don't own it, but I don't think it's bad either. CARZ - I don't buy your thesis. The auto industry as a whole will not outpace the S&P 500 due to the transition to EVs. The number of cars they sell isn't going to shoot up just because they are EVs. Maybe they can squeeze out more profit from an EV and increase their margins that way. If you want to have a play in the EV space, try looking at some automation or battery etfs.
CARZ won't be that good of a play. Some companies who refuse to adapt to EVs will go under. Others may do well. But it was even out/ Global X Lithium & Battery Tech ETF No matter who wins the EV race. They will need Lithium battereis
Try to wait for ARKK to dip. Don't buy it at or near the high for any reason. I sold ARKK because it is too tied to the price of Tesla. This might be a good thing today, but next week it might become the albatross again, holding down your entire portfolio. The VOO has just been going up, up, up after a recent flash dip down to $387 for half a day it closed above $406 today. I am waiting for a dip to buy more VOO myself (hoping for another flash dip). VOO is a must! Not sure about the other ETF you mentioned CARZ. My bet for the future is in biotech stocks individually, but EV is also a good bet for the future. I see nothing wrong with what you picked, but I prefer waiting for a good entry. You could look into buying call options or doing a wheel with a EV stock that you are extremely bullish on and plan on holding for a long time. Some people would tell you to add a bond ETF as a component of your portfolio, but I have yet to do so myself and I am over 40. Not sure if we are allowed to mention that certain blockchain "organic store of value" they've been talking about on capitol hill, but I have half of my money there. It is also likely to be a big part of the future of finance so I don't want to FOMO. Get in early if you can.
Can’t go wrong with VOO. Judging, fairly or unfairly, from your writing I’d advise a heavier proportion of your amount in a low-cost index fund (which you have identified). Check out KARS. Might be more in line with your current thinking than CARZ. Have you maxed your retirement accounts this year? Will you be able to max out next year’s?
I am into longer term industries that will trend upward that I also don't have to worry about. CARZ, THCX, ROKT, ICLN, IYW, LIT, KARS, HAIL, SMH, ARKK. They have all been performing well except CARZ and THCX, which have been stagnant for a while now.
It started when we were having a conversation about savings and I brought up how investing has a higher rate of return than a savings account. She decided to give me $100 a month to split between CARZ and BJK because she likes cars and blackjack/casinos. On top of that I've been adding my own money to buy stocks in things she likes and/or talks about a lot. She's about 10 years off from retirement so it'll be a nice gift when her $12,000 investment is a gang of money more than she expects.
My mom is an older biker chick, when I spoke to her about investing she wanted casinos and cars. So her portfolio is 50% CARZ and 50% BJK Shes.... shes made more than my vanguard portfolio..
Just invest in an automotive ETF in general. The major auto companies will have their own EV offerings that are just as good. CARZ (general auto index) actually has more exposure to TSLA. Than EKAR and KARS (EV tech-focused), which is a little funny.
Marvelous... Y’know, BJK and CARZ might end up in the Picks of the Month club. Your mom’s future might involve a blog on Substack, prescient posts on Fintwit, and a better overall average than Motley Fool. With great power... Let’s see what we can do to incorporate Fluffy. After all, $FLUF is available and it is the weekend. Now I’m off to check out your mom’s ETFs...
I wrote a whole god-damned letter in response to your comment and it didn't post. Oof. My mom initially wanted to invest only in Treasure Island Casino/Resort because they once had a Cirque du Soleil show she liked, and also Gabriel Iglesias has a show there, and she wanted to specifically invest in Fluffy and the Cirque. Like, for serious, our conversation started with "You do investing right? Is it possible to just invest in the Fluffy comedian? Or the show he does at the casinos back home?" I told her to look up ETFs and see what she likes, she came back with BJK - a total international gambling ETF - and CARZ, which is a car ETF. Her decision was that once COVID ends, people will be tourism-focused, hit Vegas up hard, and rent cars and shit for road trips. Both CARZ and BJK have gone from roughly $20 to $60 per share since last March when COVID restrictions landed, so I think they'll continue to take off towards the moon when restrictions are lifted. She has like 10 years until official retirement age, so a swingy pair of ETFs like them make sense to her rather than VOO, SPY or FXAIX. I don't have, or plan to, hold my own positions in CARZ or BJK so her stonks will be just hers, but in my account, whenever she wants to reclaim them - so when I do snapshots of my account we can easily identify what's hers and mine. Also, > First, I love the writing style in your post. ily 3000 😏 👉👈
I have 5% of my portfolio invested in QCLN. I'm going to consider CARZ too but their expense ratio is a bit high (0.60%).
A Great EFT is CARZ with portfolio of Electric Car makers..