This fund’s top five holdings include: FMC Corp (FMC, 24.40% of assets); Sociedad Quimica Y Minera De Chile SA ADR (SQM, 16.09%); Samsung SDI Co Ltd, (006400.KS, 6.48%); Tesla Inc (TSLA, 5.83%) and Albemarle Corp (ALB, 5.00%).
Global X Lithium & Battery Tech ETF (LIT)
From The Cutting Edge
Global X Lithium & Battery Tech ETF (LIT) invests in the full lithium battery cycle, from mining and refining the metal through battery production. It is designed to correspond to the Solactive Global Lithium Index.
The fund invests at least 80% of its total assets in securities of companies that are economically tied to the lithium industry. There is a heavy concentration in materials and strong international diversification.
The fund has 5.83% exposure to Tesla, which we’re willing to take on despite our views on the stock being overvalued.
As for the specifics, here are a few details worth noting:
• Price to earnings of the fund is reasonable, at 28.0.
• Average market cap of its holdings is 7.75 billion.
• Management fees are 0.75%
• Total fund operating expenses are at 0.76%.
During the most recent fiscal year, the fund’s portfolio turnover rate was 44.90%, meaning that management is relatively active—something you want to look for in an evolving industry. We rate Global X Lithium & Battery Tech ETF a “Buy” under $32.00. The risk level is “Medium-Low.”
Jason Stutman, The Cutting Edge, www.angelpub.com, 877-303-4529, July 2017