Betting On Uber's Driverless Future? These ETFs Could Pay Off

We might see Uber Technologies Inc. UBER riding the next wave of the autonomous revolution with a revolutionary tie-up between General Motors Co. GM and Nvidia Corp. NVDA. With GM leveraging Nvidia’s AI brawn to create autonomous driving technology, Uber stands to gain significantly as the ride-hailing sector moves closer to an autonomous future. And for investors looking to cash in on this trend, certain ETFs could be the way to go.

ETFs That Could Benefit

If you're looking to play the Uber angle in this self-driving shake-up, here are some ETFs that offer solid exposure:

iShares U.S. Transportation ETF IYT

Why It Matters: Puts emphasis on leading transportation and logistics companies and Uber’s AV aspirations may accelerate its long-term growth. Holds Uber as one of its core holdings, allocating over 19% to it currently.

Cambiar Aggressive Value ETF FTXR

Why It Matters: Seeks long-term capital appreciation by way of an alpha-generating strategy. The firm suggests this fund for investors with higher risk tolerance. 5.85% of the fund is allocated to Uber.

Pacer US Cash Cows Growth ETF BUL

Why It Matters: Targets capital appreciation by mirroring the S&P 900 Pure Growth Index for the top 50 companies based on free cash flow yield. 6.54% of the fund is dedicated to Uber.

Also Read: $100 Invested In Uber Technologies 5 Years Ago Would Be Worth This Much Today

The Uber Connection

GM’s recent partnership with Nvidia is a big bet on AI-powered automation, leveraging Nvidia’s AI know-how to speed up its autonomous push. The automaker previously deployed Nvidia’s chips in its Cruise robotaxis, and now it’s turning to driver-assistance technology for consumer vehicles. GM estimated that its Super Cruise technology would bring in $2 billion a year within five years, thus upping its competitive presence.

Uber’s not sitting on its hands, either. The ride-hailing company has already partnered with GM’s Cruise unit, seeing a future where Uber passengers might order up self-driving Chevys run by Nvidia’s AI. CEO Dara Khosrowshahi has indicated clearly enough -Uber views self-driving technology as a tremendous core of its long-term plan.

With Uber, GM and Nvidia pushing the boundaries of AI-driven transportation, the investment opportunities are hard to ignore. If you're looking for a way to ride this wave, these Uber-focused ETFs might be your best bet.

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