Replies to post #118 on Global X Lithium and Battery Tech ETF (LIT)

[eFinanceMarkets]

$LIT Investors betting on electric cars pour millions into lithium ETF

The red-hot Global X Lithium ETF (LIT -1.5%) is off slightly in today's early trading but that follows an all-time high reached yesterday morning, as investors rush in to bet on a coming surge in electric car sales.

Since the Xinhua newspaper reported Sept. 11 that China may start to wind down production and sales of cars using fossil fuel, investors have poured $143M into LIT, and this Tuesday alone saw nearly $50M in inflows for the now $651M fund - an "extremely rare" display of interest in an ETF, especially one so narrowly focused, says Todd Rosenbluth, director of ETF and mutual fund research at CFRA.

The cost of a lithium battery has been cut in half over the last three years, leading to an "inflection point" in demand for the metal, says Jay Jacobs, director of research at Global X Funds.

Tesla (TSLA -0.8%) accounts for nearly 7% of the Global X LIT fund, and FMC Corp. (FMC -1.1%), which has a major lithium producing unit, accounts for nearly 25%; other top holdings include SQM (SQM +1%), Samsung SDI (OTC:SSDIY), Panasonic (OTCPK:PCRFY) and Albemarle (ALB -1.2%).