On Monday 17th May, the Electric Vehicle Innovation Fund completed its annual reconstitution. That is where the underlying index checks the eligibility of all companies listed on a US stock exchange (regardless of whether US headquartered or primary listed) as of the reference date of 30 April. They are then weighted according to whether EV is their core business or not and that the companies have sufficient daily trading to handle a daily fund flow of US$25 million.
To qualify, companies must be focused on producing electric vehicles and associated subsystems, including:
- Electric road vehicles or significant subsystems.
- Powertrain systems, motors or energy storage systems for electric vehicles.
- Zero-emission clean fuel technology, such as hydrogen fuel cells.
- Charging systems for electric vehicles, not including charging networks or associated infrastructure.
Subsequent to this reconstitution, there are 15 additional companies that now qualify and have been added to the Fund. These include big established names like Ford, Blue Bird and PACCAR, as well as new innovators such as Lordstown, Fisker and Aspen Aerogels. More details on each of those companies below and the full list of constituents and weightings is on the Fund page.
Overall with 44 constituents, there are now 23 vehicle manufacturers and 21 component suppliers in the Fund. Manufacturers and suppliers coincidentally each representing 50% of the fund’s value as at 18 May 2021.
Some of the companies added in May 2021 to the Kernel S&P Kensho Electric Vehicle Innovation Fund are:
Ford: In the last 12 months, the pioneers of the assembly line have doubled down on electric announcing that by 2026, the company will offer only electric and plug-in hybrid models. Joe Biden said this week “The future of the auto industry is electric. There's no turning back," while visiting the Ford Rouge Electric Vehicle Center.
Blue Bird Corporation: Those classic American yellow school buses seen in movies and TV shows are made by a company founded in 1932 and headquartered in the U.S. state of Georgia. Blue Bird was first to market with electric school buses in 1994 and with advances in battery technology, now offer efficient and affordable electric-powered buses. Further, the buses have vehicle-to-grid technology meaning the school bus batteries store energy, including renewable energy generated from sources like wind and solar, when the grid doesn’t have immediate need for it and can charge at off-peak times to load balance the national grid and sell back to the grid in evening peak times.
PACCAR: Founded in 1905 they are one of the largest manufacturers of medium- and heavy-duty trucks in the world. They are the makers of Kenworth, Leyland and DAF brands. This year they start mass production of electric heavy trucks featuring regenerative braking that allows the battery packs to recharge while descending hills.
Lordstown Motors: Manufacturers of a new electric ute called Endurance with first deliveries planned for September 2021. It was founded in 2018 and publicly listed on the NASDAQ in October 2020, announcing significant backing from General Motors at the time. It has attracted some controversy along the way, and this year alone moved from $20 to $30 down to $7 and now over $10 a share. It current weighting is 3.1% of the fund.
Aspen Aerogels: An energy technology company providing innovative thermal management solutions to the automotive, subsea construction and cryogenic industries. Aspen’s aerogel insulation is up to five times more effective than traditional insulation materials, while being industrially robust across a broad temperature range in a space-saving, easy-to-use form, making it the most efficient industrial insulation.
Fisker: In addition to designing and developing luxury electric vehicles such as the Fisker Ocean, an all-electric SUV made from recycled and vegan materials, Fisker Inc. has filed patents pertaining to solid-state battery technology for use in automotive, consumer electronics and other industries. The founder Henrik Fisher was the original designer of the Aston Martin DB9 and Vantage, and has been in California designing and building green, beautiful and exciting electric cars since 2007.