Meanwhile, the mutual fund industry also boasts a product that combines exposure to a diverse collection of auto related equities. The Fidelity Select Automotive Fund's (FSAVX) portfolio includes many of the same auto manufacturers as CARZ. However, unlike First Trust's new product, this mutual fund option expands its exposure beyond manufacturers to include suppliers. Johnson Controls, Tenneco (TEN) and TRW Automotive Holdings (TRW) can be found listed among the fund's top 10 components.
The auto industry's phoenix-like resurgence has been exciting to watch and now, with the introduction of CARZ, ETF investors have their first chance to gain direct global exposure. It will be important to exercise caution in the opening days of the fund. As CARZ works to establish its place within the ETF industry, investors should continue turn to weathered-auto plays such as XRT, IYK and FSAVX.
Written by Don Dion in Williamstown, Mass.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV