What Is KARS? KraneShares Electric Vehicles and Future Mobility Index ETF

KARS is the KraneShares Electric Vehicles and Future Mobility Index ETF, a global fund that tracks the Bloomberg Electric Vehicles Index. Rather than betting on a single automaker, it holds a basket of companies across the electric-vehicle ecosystem: the chipmakers, battery producers, automakers, parts suppliers, and lithium and copper miners that together make the EV transition possible.

Issued by Krane Funds Advisors under the KraneShares brand, KARS launched in January 2018 as one of the first dedicated EV ETFs. It gives investors one-ticker access to a theme that spans the US, Europe, and Asia, with a market-cap-weighted index that caps individual names to keep any single stock from dominating.

Approximate weights as of mid-2026; refresh quarterly from Krane Funds Advisors (KraneShares)'s fund page. Each ticker links to its individual stock guide in Walnut.

KARS holds a globally diversified set of stocks spread across the EV value chain. Semiconductor names such as STMicroelectronics, ON Semiconductor, and Infineon sit near the top, alongside battery makers Panasonic and Contemporary Amperex Technology (CATL), automakers BYD, Tesla, and Nio, parts supplier Aptiv, and lithium miner Albemarle. The top 10 positions make up roughly 40% of the fund.

The mix is intentionally broad. Because the index rewards the whole supply chain, KARS can capture EV growth even when automaker share prices are struggling, since chip and battery demand often holds up. That structure also brings meaningful China and Europe exposure, which sets it apart from more US-centric EV funds.

The most obvious peers are Global X's DRIV and LIT and iShares' IDRV. DRIV, the Autonomous and Electric Vehicles ETF, holds around 75 names and tilts toward large US tech and automakers at about 0.68%. IDRV, the iShares Self-Driving EV and Tech ETF, is similarly broad with a lower fee. Both feel more like large-cap technology funds than pure EV plays.

LIT concentrates on lithium mining and battery production, a narrower slice of the chain. KARS sits between them: broader than LIT, more globally spread and more supplier-weighted than DRIV or IDRV, and more concentrated overall. Its higher 0.72% fee and China exposure are the trade-offs for that wider, more international reach.

KARS performance tracks the fortunes of the global EV theme, which has moved in sharp cycles. The fund rode the 2020 to 2021 EV boom, then gave back much of those gains as demand growth slowed, interest rates rose, and battery-metal prices fell. Its returns depend heavily on EV adoption rates, policy support, and the health of Chinese and European automakers.

The long-term case rests on continued electrification of transport and the buildout of battery and charging infrastructure worldwide. The risks are real: the theme is volatile, the fund is small at around $105 million, and its China exposure adds geopolitical uncertainty. Investors should expect large swings rather than steady, market-like returns.

Whether KARS fits depends on your goals, timeline, and risk tolerance, and this is not investment advice. It can make sense as a thematic satellite for investors who want diversified, global exposure to the electric-vehicle transition without picking individual winners, and who accept a higher fee and above-average volatility in exchange.

It is a weaker fit for anyone seeking income, low costs, or a core holding, given its 0.2% yield, 0.72% fee, small asset base, and single-theme concentration. Many investors size a fund like KARS as a modest slice of a broader portfolio rather than a central position. Consider how it complements what you already own.

KARS trades on any major US brokerage, including Robinhood, Fidelity, Charles Schwab, and Public. Many of these platforms offer fractional shares, so you can buy a small dollar amount rather than a whole share, which is helpful for dollar-cost averaging into a volatile theme over time.

You can also connect your brokerage account to Walnut to track KARS inside a thematic basket, set a target weight, and see how it fits alongside your other holdings. Walnut keeps trade execution at your broker and helps you monitor whether your EV exposure stays aligned with your intended plan.

ETFs are passive bundles; thematic baskets in Walnut let you concentrate within them. If you hold KARS as a core position, these are the themes you might layer on as satellites.

KARS gives one-ticker access to the global electric-vehicle supply chain, from chipmakers and battery cells to automakers and lithium miners. At about 0.72% it costs more than a broad ETF and its small asset base and China exposure add risk. Best viewed as a thematic satellite position, not a core holding.

Whether KARS is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is KARS a buy?

KARS yields ~0.2% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see KARS dividend: yield and schedule.