Autonomous Vehicles

This basket targets the autonomous vehicles theme by capturing companies developing core self-driving technologies, with a focus on AI-powered software, hardware integration, and commercial deployment in trucking and mobility services. It holds 20 names diversified across technology, industrials, and consumer discretionary sectors, including pure-play autonomous driving platforms and supporting ecosystem players. The investment logic rests on the sector's explosive growth trajectory, with the global autonomous vehicle market projected to expand from approximately $364 billion in 2026 to over $5.4 trillion by 2035 at a 34.84% CAGR, driven by safety gains from eliminating human error in trucking, efficiency in logistics, and scalability of robotaxi and robobus operations. With high-conviction exposures concentrated in leaders advancing driverless miles and commercial routes, the basket's effective N of 15.7 ensures focused yet diversified participation in the shift toward Level 4 autonomy.

Key risks include regulatory delays in approving unsupervised operations, technological hurdles in achieving consistent performance across diverse environments and weather conditions, and intense competition that could pressure margins during the commercialization phase. The highest-conviction position is AUR at 10.3% weight with an exposure score of 89, as Aurora Innovation leads in autonomous trucking with its Aurora Driver platform already logging hundreds of thousands of driverless miles in commercial freight operations across expanding U.S. routes, backed by partnerships with major fleets and a clear path to scaling driver-as-a-service revenue ahead of broader robotaxi adoption.