This March, electric-vehicle sales jumped 74.7 per cent year-over-year.Doug Ives/The Canadian Press
You’d have to be living in an internet dead zone (or maybe Iran) not to know that the bombing campaigns launched by the U.S. and Israel on Feb. 28 have had an adverse impact on the lives of individuals around the globe.
For most, the immediate effect was felt at the gas pumps. The cost to fuel a car or truck skyrocketed. Some analysts say it will take months for fuel prices to return to pre-Feb. 28 levels because of the back-up of ships in the Persian Gulf, and the destruction of production and storage facilities in the region.
We’ve also heard about shortages of fertilizer products, some of which are produced in the Middle East as by-products of natural gas. There are dire warnings about crop shortfalls next autumn because of the cost and availability of fertilizers during planting season.
There’s more. Bonds are selling off as a deal to end the Iran war seems as elusive as a mirage, sparking fears of global inflation. That’s dampening hopes that the Canadian and U.S. housing markets will rebound. Consumers are bracing for higher prices for everything from food to clothing because of higher transportation costs.
Global energy crisis set to sharpen China’s clean-tech advantage
One change in consumer attitudes I’m watching is the renewed interest in electric vehicles (EVs). We’re seeing it right here at home. In March, EV sales jumped 74.7 per cent year-over-year. Canadians purchased 21,574 zero-emission vehicles, capturing 12.2 per cent of the total auto market. The surge was driven by high gas prices, the return of federal incentives and near price parity with gas-powered cars.
Globally, EV sales reached 1.75 million units, up 66 per cent from the previous month. But data from Benchmark Mineral Intelligence showed a wide divergence across various markets. Sales in Europe were up 37 per cent year-over-year, but they were down 21 per cent in China and 27 per cent in North America.
It’s too soon to know whether the consumer interest in EVs is sustainable or will fade when gas prices drop. Many investors seem to think the shift is real, as the latest results from two of our ETF recommendations indicate.
Global X Autonomous & Electric Vehicles ETF (DRIV-N)
Originally recommended on Oct. 25/21 at $28.95. Closed Friday at $41.60. (Figures in U.S. dollars.)
Background: This passively managed fund was launched in April, 2018, and has 75 stocks. It invests in companies that make self-driving and electric vehicles as well as EV components, including software, lithium batteries, and materials such as lithium and cobalt.
Performance: This is a classic turnaround situation. The ETF experienced a steady decline almost from the moment it was first recommended. At the time of our last review in October, 2024, it was down 36 per cent from its 2021 peak of $31.88 and 29 per cent from its 2021 recommended price. We advised holding at that point, commenting that most of the damage had been done. That was the right call. The units closed Friday on the Nasdaq at $41.60, up about 44 per cent from the original recommended price and 39 per cent year to date.
Key metrics: Assets have increased to $475-million, but that’s not much higher than in October, 2024, suggesting that investors are still skeptical about the future of EVs despite the dramatic changes in the industry over the past two years. The expense ratio is 0.68 per cent.
Portfolio: The largest position, by far, is Intel, which comprises 5.4 per cent of the fund’s assets. Intel’s shares have almost tripled since late March, giving a big boost to the fund.
Other top holdings include Qualcomm (2.9 per cent), Nvidia (2.71 per cent), Alphabet (2.71 per cent), and WNC Corp. (2.37 per cent).
The ETF is weighted toward U.S. companies (53.4 per cent) with Japan second at 9.5 per cent and China at 7.4 per cent.
Distribution: There are two distributions a year, both small. In 2025, investors received a total of $0.316 per unit.
Discussion: China’s development of stylish, reasonably priced EVs may represent a fundamental change in the market. Canada has opened the door a crack to allow 50,000 Chinese EVs to be imported. Europe and the U.S. are trying to ban imports, but President Donald Trump has suggested he could be on side if the cars are built in the U.S. using American labour.
With consumer interest picking up, this looks like a sector that is just starting to roll, but short-term interest may falter when the Iran war ends.
Action now: Buy, for aggressive investors
Global X Lithium & Battery Technology ETF (LIT-N)
Originally recommended on Aug. 29/16 at $24.56. Closed Friday at $87.15. (All figures in U.S. dollars.)
Background: This ETF invests in the full lithium cycle, from mining and refining the metal, through battery production. It has a broad sector breakdown that includes materials, information technology, industrials, consumer discretionary, and financials. Consider it as a more focused version of DRIV, with an emphasis on one of the key elements of EV production.
Performance: After five years of a bumpy downside, this ETF has taken flight. It gained about 135 per cent in the past 12 months, most of it since late April. We’re now up 255 per cent from our original Buy signal.
Key metrics: The fund was launched in July, 2010, and has assets under management of $2.2-billion. The expense ratio is 0.75 per cent.
Portfolio: About half the fund is invested in materials stocks, such as miner Rio Tinto, which is the largest position at 20.6 per cent. There are also some electronics companies such as Samsung and Panasonic, car manufacturers such as Tesla, and several Chinese firms most people have never heard of. Chinese stocks make up 34.2 per cent of the fund’s total assets.
Distribution: Payments are made twice a year. The total in 2025 was $0.315 per unit.
Discussion: The oil shocks and soaring fuel prices as a result of the Iran war have created new demand for electric vehicles. This surge in EV demand combined with tight supply has driven forecasters to repeatedly revise lithium price projections upward.
Action now: If you believe the transition to EVs is irreversible, it’s a matter of deciding whether to invest in the whole sector (DRIV) or just part of it (LIT). Both ETFs are Buys for investors who believe EVs are the future of the automotive industry.
Gordon Pape is editor and publisher of the Internet Wealth Builder and Income Investor newsletters.