Auto ETF

Within this auto ETF you will find the stocks of European car manufacturers and suppliers for the auto industry. 

Auto manufacturers are in a great part depended upon the well-being of the European or global economy. Another important metric is the life cycle of cars. Cars that are used intensively need to be replaced more often. 

When market conditions are bad consumers tend to drive their cars longer or they opt for cheaper second hand cars. The auto industry then is facing some years of decline. But if the economy is looking all rosy and sweet people start buying cars right away.

An extra boost will come then from consumers who have stretched the life span of their cars a little bit too long and they need to buy a new car. In a word, it’s a bit of running hard to stand still. As an investor you will need to adjust to these movements. 

Within this auto ETF you will find only European automakers. Years ago European auto manufacturers were mainly depended upon the European or even domestic sales but these years are definitely behind us. European brands (and German brands in particularly) are very depended on worldwide exports. 

These global exports have had a huge impact on the profitability of European auto makers but simultaneously it made them more vulnerable to currency fluctuations, trade tariffs and large economies like China. 

Lyxor STOXX Europe 600 Automobiles and Parts UCITS ETF

This Lyxor auto ETF is tracking the Stoxx Europe 600 Automobiles and Parts (net Return) index. In total this ETF includes 15 different companies.

The largest company in this auto ETF is Daimler with a 30% share. Second is BMW and Volkswagen with a share of 11% each. Tyre manufacturers like Continental and Michelin also are important companies in this auto ETF.

You will not be surprised to find Germany leading the geographical spread with a share of 70%. France comes in second with 20% and Italy is third with 7%.

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