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Trackinsight: Lithium ETF is having its second-best month of the year

October 27, 2021 at 10:49 am EDT

Lithium carbonate prices in China rose to more than 190,000 yuan per tonne in October, breaking records due to tight supply and stable battery demand.

Thematic Global X Lithium & Battery ETF (LIT) is up by 10.44% month-to-date, its second-best performance of the year (so far) since July's +14.93% surge. Overall, LIT has been "lit" this year with around 46% gains on rising lithium prices.

Lithium carbonate prices in China rose to more than 190,000 yuan per tonne in October, breaking records due to tight supply and stable battery demand. Prices for rare metal, which is a key ingredient to power electric vehicles, boomed over the past year, as automakers and battery manufacturers race to secure supplies amid a global push for increased electrification. In addition, demand continued to rebound as the economies recover from the COVID-19 pandemic hit.

LIT ETF gives investors access to the lithium cycle, including mining, refinement and battery production. China (50.5%) and United States (21.3%) have the largest exposure followed by South Korea (9.0%) and Australia (6.6%). Its top holdings include Albermarle Corp. (13.77%, chemical manufacturer), Yunnan Energy New Material (7.00%, Lithium film products) Cotemporary Amperex Technology (5.95%, Lithium battery developer and manufacturer) and Ganfeng Lithium (5.87%, Lithium compounds and metals producer).

LIT trades on the NYSE Arca and charges an annual fee of 0.75%. The fund is part of Trackinsight's battery-value chain theme and the broader Alternative Energy Trend. The theme includes 5 other ETFs with combined assets of $7.3 billion (including LIT) and an overall performance of 6.52% in the last 30 days.

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