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Global X Battery Tech & Lithium ETF (ASX: ACDC) - Market Matters
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Global X Battery Tech & Lithium ETF (ASX: ACDC)

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

    Hi MM team, I would be interested in your updated thinking on ACDC given 3 months of price decline.. or price correction as seems to be the broker terminology for this! You appear positive on lithium (PLS). Does that positivity extend more generally to this ETF. Cheers.

    Answer

    Hi Alain,

    In markets, a correction is generally defined as a decline of 10-20%, from a recent peak, hence the ~36% fall by the ACDC ETF should actually be called a “Bear Market.”

    The ACDC ETF provides diversified exposure across the global battery and lithium value chain, spanning battery manufacturers, materials suppliers, electrification equipment and miners, with major holdings including Panasonic, Siemens, Hitachi, TDK, Zijin Mining, Rio Tinto, CATL and Mineral Resources.
    The recent weakness reflects a combination of soft lithium and battery-material prices, uncertainty around US EV demand and policy, and broader outflows from clean-energy and ESG strategies, compounded by weakness across some Japanese industrial holdings.
    • The ACDC has stabilised through August, helped by improving sentiment toward Chinese EV names, but remains well below its June highs.
    As an investor, you pay a 0.69% p.a. management fee for ACDC, which currently holds 47 stocks. Its largest ASX-listed exposures are RIO and MIN, although each represents less than 3% of the portfolio and both have significant iron ore exposure alongside their lithium businesses.
    • We do like the risk/reward towards the ACDC ETF around $128, but much prefer quality stock alternatives for lithium exposure, such as PLS, Albemarle in the US, and even Liontown in the smaller space, all of which we have bought recently.
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    Global X Battery Tech & Lithium ETF (ACDC)
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