Reviewed by Sep 30, 2020| Updated on
The auto industry ETF is an exchange-traded fund derives its value from the prices of stocks of auto industries. All types of auto companies are included such as auto manufacturers and auto ancillaries.
ETFs are investment products offering exposure to the stocks of a particular sector. ETFs diversify risks across different stocks and provide retail investors with an opportunity to invest in an industry.
The underlying group of auto industry ETF consists of manufacturers of all types of auto components and auto-parts. The ETF can also include companies which undertake research and development, distribution of materials and sale of automobile and automobile equipment.