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Exchange-traded funds linked to Chinese electric vehicle companies advanced in intraday trading on Monday, even as LI Auto (NASDAQ: LI) gave up early earnings it posted on the back of its fourth-quarter results. The breakthrough came ahead of the quarterly updates. for exiting Xpeng (NYSE:XPEV) and CHILD (New York Stock Exchange:NIO).
Meanwhile, the broader EV sector received a boost from the Fisker results (New York Stock Exchange: FSR). This movement also came with Rivian (RIVN) figures available. FSR went up more than 25% in intraday trading after projecting positive EBITDA and providing an upbeat update on deliveries.
Looking specifically at players in the China-based market, shares of Li Auto (LI) showed strength earlier in the day on fourth-quarter earnings pace and an upbeat outlook. However, stocks pulled back during the middle of the day and were near a flatline around 2 pm ET.
Elsewhere in the sector, shares of Xpeng (XPEV) traded higher after the Hang Seng TECH Index announced that the automaker will join the index.
XPEV, LI are owned by 33 ETFs and NIO is owned by 62 ETFs. Within this group, KraneShares MSCI China Clean Technology Index ETF (KGRN) advanced more than 1%while Invesco Golden Dragon China Portfolio ETF (PGJ) rose around 2%.
For KGRN, NIO has the highest weighting within the fund, with a concentration of 8.1%. XPEV and LI are also significantly represented within the ETF, with a weighting of 4.2% and 1.7%, respectively.
Looking at other ETFs with large concentrations of NIO, XPEV and LI, Invesco MSCI Sustainable Future ETF (ERTH) +1.2% and VanEck Vector Low Carbon Energy ETF (SMOG) +1.3%.
Here are some related ETFs and their intraday action on Monday:
- SPDR S&P Kensho Smart Mobility ETF (HAIL) +1.7%
- Global X Autonomous and Electric Vehicles ETF (DRIV) +1.7%
- KraneShares Electric Vehicles & Future Mobility Index ETF (KARS) +1.6%
- iShares Self-Driving EV and Tech ETF (IDRV) +1.5%
- Amplify Lithium Battery Technology ETF (BATT) +1.1%
- Direction Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV) +5.4%
For a broader market look, see why Seeking Alpha contributor Tony Investing says “relaxing restrictions in China could support new car demand through 2023.”