Autonomous vehicles (AVs) are no longer a distant sci-fi fantasy; they are becoming a street-level reality that is actively reshaping urban transportation. Recent data highlights a sharp rise in autonomous ride-hailing activity across major U.S. markets.

In May 2026, Tesla (TSLA Quick QuoteTSLA - Free Report) CEO Elon Musk predicted widespread use of fully self-driving cars without human monitors across the United States this year, noting they are already operating in Texas. On the other hand, Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) Waymo secured a massive $16 billion funding round in February 2026 to fuel global robotaxi expansion plans.

Against this backdrop, investors looking to capture the significant upside of this next-generation mobility shift without relying on a single company may find thematic exchange-traded funds (ETFs) focused on AVs and smart mobility to be a more diversified approach.

Let’s explore the key corporate players advancing the technology and the market outlook shaping its trajectory before examining the specifics of the smart ETF playbook for navigating this high-growth opportunity.

Leaders and New Entrants Riding the AV Wave

The AV ecosystem is currently dominated by a mix of pure-play tech pioneers and legacy automotive giants ramping up their self-driving software capabilities.

At the forefront of the self-driving car industry is undoubtedly Tesla, with its robotaxi service now operating in Texas’ Austin, Dallas and Houston. The company also received a permit to operate its ride-hailing service in Arizona last November. TSLA is currently focused on ramping up production of its Cybercab robotaxi this year as it seeks to expand its autonomous ride-hailing services.

Alphabet, through its Waymo subsidiary, is another dominant force in the AV space, with the company currently operating in Austin, the San Francisco Bay Area, Phoenix, Atlanta and Los Angeles. Looking ahead, GOOGL aims to expand into several additional cities in 2026, including international markets such as London and Tokyo.

Amazon’s (AMZN Quick QuoteAMZN - Free Report) Zoox subsidiary is also gaining traction with its bidirectional robotaxi designed explicitly for dense urban environments. This robotaxi is currently operating in Las Vegas and certain San Francisco neighborhoods. In March 2026, the company announced that it is preparing to launch its robotaxi service to some members of the public in Austin and Miami later this year.   

In addition to these companies, renowned automakers like Ford and General Motors are also participating heavily in the AV space, recognizing its growth prospects. Rather than rushing to deploy purely driverless fleets, they are scaling autonomous safety features directly into millions of their consumer vehicles. 

Ford is currently promoting its hands-free highway driving software, BlueCruise, which is a first-of-its-kind in Europe and is now available on select Ford models, including Mustang Mach-E, Kuga, Puma, Puma Gen-E, and Ranger. General Motors’ Super Cruise advanced driver assistance system allows drivers to remove their hands from the wheel under specified conditions and is currently offered in 20 vehicle models.

The Road Ahead: Rosy or Bumpy?

Looking ahead, the AV industry presents a massive financial opportunity. Goldman Sachs projected in April 2026 that the global robotaxi market may reach $415 billion by 2035, with the U.S. market accounting for roughly $48 billion.

Steady private equity investment flowing into autonomous driving tech signals deep institutional confidence in the industry’s long-term future.

However, the road to full autonomy is paved with hurdles, as the industry faces persistent regulatory scrutiny, complex edge-case engineering challenges, and public safety apprehensions.

The ETF Playbook: Diversifying the Ride

Considering the aforementioned discussion, one must also keep in mind that investing in a single AV-focused stock harbors some risks. For example, Tesla has frequently faced headwinds, including regulatory probes into its autopilot systems and sudden stock fluctuations based on shifting timelines. On the other hand, Waymo had to issue a recall for 3,791 of its fifth- and sixth-generation AVs recently, after unoccupied cars drove into flooded roadways and were swept away. 

Therefore, investors looking to participate in the autonomous boom while mitigating single-stock risks can add the following ETFs to their portfolios:

ARK Autonomous Technology & Robotics ETF (ARKQ Quick QuoteARKQ - Free Report)

This fund, with net assets worth $2.11 billion, offers exposure to 30-50 autonomous technology and robotics companies. TSLA holds the first position in this fund, with 10.38% weightage, while AMZN holds the ninth position with 3.18% weightage. 

ARKQ has rallied 16.5% year to date. The fund charges 75 basis points (bps) as fees and traded at a volume of 0.31 million shares in the last trading session. 

Global X Autonomous & Electric Vehicles ETF (DRIV Quick QuoteDRIV - Free Report)

This fund, with net assets worth $436.4 million, offers exposure to 75 companies involved in the development of autonomous vehicle technology, electric vehicles (“EVs”), and EV components and materials. GOOGL holds the third position in this fund, with 2.93% weightage, while TSLA holds the fifth position with 2.36% weightage. 

DRIV surged 30.7% year to date. The fund charges 68 bps as fees and traded at a volume of 0.06 million shares in the last trading session. 

KraneShares Electric Vehicles and Future Mobility Index ETF (KARS Quick QuoteKARS - Free Report)

This fund, with net assets worth $101.7 million, offers exposure to 80 global companies that operate in all areas of new transportation methods, passenger and freight, including electric vehicles, autonomous vehicles and shared mobility. TSLA holds the fifth position in this fund with 3.89% weightage. 

KARS has risen 14.7% year to date. The fund charges 72 bps as fees and traded at a volume of 0.03 million shares in the last trading session. 

iShares Self-Driving EV and Tech ETF (IDRV Quick QuoteIDRV - Free Report)

This fund, with net assets worth $153 million, offers exposure to 57 global companies that may benefit from growth and innovation in electric vehicles, battery technologies, and autonomous driving. TSLA holds the 11th position in this fund with 3.42% weightage. 

IDRV has gained 9.6% year to date. The fund charges 48 bps as fees and traded at a volume of 0.02 million shares in the last trading session.