Global X Battery Tech & Lithium ETF (LIT US) $75.47

This US-traded ETF weights companies by market cap and liquidity among global stocks involved in the lithium lifecycle, not just pure-play lithium miners, as it follows the Solactive Global Lithium Index. Hence it has a very different composition from the ASX-traded ACDC ETF:

• Global X Battery Tech & Lithium ETF (ACDC) top four holdings are: Sigma Lithium 5.4%, Liontown 3.7%, Albermarle 3.5% and Pilbara 3.2%.
• Global X Battery Tech & Lithium ETF (LIT US) top four holdings are: RIO Tinto 22%, Albermarle 7.7%, Samsung 5%, and Panasonic 4%.

We are not fans of this ETF, as we believe it does not provide the targeted lithium exposure most investors would expect when allocating to the theme. However, its performance has been good in line with the resources sector as a whole, delivering similar returns to the ACDC ETF.

• We are looking for the LIT ETF to consolidate recent gains over the coming weeks/months.