The new ASX-listed VOLT ETF provides investors with diversified exposure to global lithium mining companies, including producers, developers and processors that generate a significant share of their revenue from lithium. It is designed to give investors a pure-play exposure to the long-term growth in lithium demand driven by electric vehicles, battery energy storage and broader electrification trends, rather than investing in a single lithium stock.
This small ETF only started trading in May, but we like its composition; it reflects what most investors regard as a lithium basket compared to the ACDC alternative, which holds more than 30% in automotive stocks compared to ~16% in metals and mining. Conversely, the VOLT’s 5 biggest positions are Albemarle, PLS, Sociedad Quimica, IGO, and Ganfeng Lithium, making up ~55% of the ETF.
- We like the risk/reward towards the VOLT ETF around the $6 area.
