Defiance ETFs has announced its plans to launch a new exchange-traded fund (ETF) called the Defiance Pure Electric Vehicle ETF (EVXX). This ETF will focus specifically on the electric vehicle (EV) sector and will invest in companies that derive at least 50% of their annual revenue or operating activity from the development or manufacturing of electric vehicles. The stocks included in the fund will also need to have high trading volume and liquidity.
The EVXX ETF will be actively managed and will trade on the New York Stock Exchange. It has an expense ratio of 0.68%, which means that investors will pay this percentage of their investment annually as a fee.
Although the prospectus does not provide specific details about the holdings of the EVXX ETF, Tesla (TSLA) is mentioned as a potential significant constituent due to its status as a prominent player in the “pure electric vehicle” space.