Energy Storage

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>>> Global X Lithium & Battery Tech ETF (LIT)


MarketWatch

12-11-20


https://finance.yahoo.com/news/7-electric-vehicle-stocks-style-133544446.html


52-Week Range: $17.83 – $54.69
Year-to-date (YTD) change: Up 98.45%
Dividend Yield: 0.82%
Expense Ratio: 0.75%


Our first choice today is the Global X Lithium & Battery Tech ETF, which provides access to global businesses that focus on lithium. Their operations range from mining and refining lithium to manufacturing lithium batteries, which have been in high demand due to increased EV sales.

InvestorPlace readers likely know that battery costs affect the final sales price of any electric car. Thus, any discussion on EV stocks would also benefit from paying attention to companies engaged in the manufacturing lithium batteries.

LIT, which has 41 holdings, tracks the Solactive Global Lithium Index. This fund started trading in July 2020 and net assets stand close to $1.4 billion. From a geographic standpoint, China-based companies top the list with 43.3%, followed by the U.S. (22%), South Korea (11.7), and Japan (6.7%), among others.

The top five names, Albemarle (NYSE:ALB), Ganfeng Lithium, LG Chem (OTCMKTS:LGCLF), Samsung and Tesla comprise close to 34% of the fund. So far in 2020, the fund is up over 98% and hit a record high in early December.

Given the recent run-up in the price of the fund, short-term profit-taking could well be around the corner. However, the bull trend in batteries will likely continue into 2021 as well.

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