What are the most popular mutual funds that invest in the automotive sector?

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Rydex Transport Fund

There are few mutual funds that invest mainly in the car industry, although large car companies such as Ford, Toyota and General Motors are among the holders of a fairly large number of mutual funds. Among the few funds that focus mainly on the automotive industry are the Select Automotive Select portfolio and the Rydex transport fund.

Part of the wider transportation industry, the automotive industry is made up of a wide range of companies and enterprises responsible for the design, production, marketing and sale of automobiles. The industry is heavily regulated by safety fees due to the nature of its products. Cars and other motor vehicles must comply with a large number of regulations, both locally and internationally, before they are eligible for sale on the market.


Loyalty Select your car portfolio

The Select Autel Portfolio is designed to earn capital appreciation for clients by investing in solid growth and revenue stocks. At least 80% of the assets of this fund shall be invested in the common stocks of the companies mainly responsible for the production, sale or sale of motor vehicles, lorries or specialized vehicles or their parts and services. The fund invests in both external and internal issues. Twice a year, the fund pays dividends. The fund is non-diversified, with a lower risk than the industry average. Some of the most important titles of this fund are General Motors, Tesla, Honda and Toyota starting with June 2018.


Rydex Transport Fund

The Rydex Transport Fund is a non-diversified fund that seeks to maximize capital appreciation through a variety of investment instruments with exposure to the transport sector. The fund invests most of its assets in securities of US shipping companies. It also invests in derivatives, mainly futures, securities and stock index options, and sometimes invests in US government securities. The fund uses investments in US depository receipts (ADRs) to trade with foreign carriers. The risk of this fund is assessed higher than the industry average. Top holdings for this fund include Union Pacific, UPS, CSX, Tesla and FedEx since June 2018.


Emerging markets are constantly increasing purchases of cars and other vehicles. The main emerging markets for the automotive industry are the BRIC countries - Brazil, Russia, India and China. Other emerging markets with a potentially strong demand for cars are Iran and Indonesia. Therefore, investors interested in the automotive industry may also want to consider emerging market funds that have significant investments in the industry.
 
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