We asked some of our freelance writers to reveal their top-rated investment funds for March.
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Global X Autonomous & Electric Vehicles
What it does: Global X Autonomous & Electric Vehicles invests in companies that make passenger cars and help them to run.
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By Royston Wild. Demand for electric vehicles (EVs) is tipped to slow sharply in 2023 as Chinese subsidies come to an end and high inflation persists. Analysts at Bloomberg think plug-in sales will grow to 13.6m this year from around 10m in 2022.
Yet investing in the sector could reap magnificent long-term returns as the green revolution rolls on. AccordinglyI believe Global X Autonomous & Electric Vehicles (LSE:DRVG) could be a great fund to own for the next decade.
This exchange-traded fund (ETF) has more than $900m invested in companies at all stages of the EV ecosystem. These include vehicle manufacturers themselves as well as software developers, semiconductor makers and producers of critical commodities like lithium. Key holdings here include Tesla, Nvidia, Honeywell and Apple.
The fund says that EVs accounted for just 5% of new car sales last year. This means the companies in its portfolio have enormous scope to grow profits. Furthermore, Global X Autonomous & Electric Vehicles also gives investors exposure to the fast-growing field of self-driving vehicles.
Royston Wild does not own any of the shares or funds mentioned above.
Sanlam Global Artificial Intelligence
What it does: Sanlam Global Artificial Intelligence is a growth fund that invests in companies that are active in the artificial intelligence (AI) space.
By Edward Sheldon, CFA. Artificial intelligence is a hot investment theme at the moment. And I see the Sanlam Global Artificial Intelligence fund as a good way to get broad exposure to the theme.
This fund seeks to invest in companies whose engagement with AI is likely to make a ‘material difference’ to their long-term economic value. This includes businesses outside the technology sector. It’s fair to say the fund contains an interesting mix of stocks. At the end of January, its top holdings included tech giants Alphabet and Microsoft, chip designer Nvidia, oil field service company Halliburton, and health insurance firm UnitedHealth.
It’s worth pointing out that this is a higher-risk fund. I expect it to be volatile due to its exposure to the tech sector. I’m comfortable with the risks though. I think the fund could boost my overall investment returns in the years ahead as AI goes mainstream.
Edward Sheldon has a position in the Sanlam Global Artificial Intelligence fund and owns shares in Alphabet, Microsoft, and Nvidia.
