Global X Battery Tech & Lithium ETF (ASX: ACDC) $117.70

The ACDC ETF provides investors with exposure to a global portfolio of companies involved across the battery value chain, including lithium and other critical mineral miners, battery manufacturers and electric vehicle producers, offering diversified exposure to the long-term electrification and energy storage theme. The ETF’s ~33% decline over the last 2 months reflects a painful combination of Chinese tax policy tightening on batteries, lithium price instability driven by potential mine restarts, weak earnings from pure-play battery names, and a broad sector rotation away from clean energy themes. The portfolio’s diversified nature, spanning industrials, miners, and battery makers across Japan, China, Europe, and the US, provided limited shelter given the sector-wide nature of the selloff.

However, at MM we flagged the pullback in lithium a few months ago; with almost 80% of our targeted move now in the rearview mirror, we believe it’s time to start looking for good risk/reward opportunities towards the sector.

• As we like to say, don’t fight the tape, but the ACDC “feels” like it’s getting oversold as the lithium trade experiences an aggressive unwind.