Lithium & Battery Fund Charges ahead 30% in 12 Months

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

Exciting trends and themes are always appearing in the market and, unlike a decade or so ago, investors today easily can tap them through exchange-traded funds (ETFs), such as the Global X Lithium & Battery Tech ETF (LIT).

Lithium and batteries are a theme many investors will recognize due to their association with electric vehicles already introduced by Tesla Motors (NASDAQ: TSLA), General Motors (NYSE: GM), Nissan Motor Co., Ltd. (OTCMKTS: NSANY) and other manufacturers. Each of those car builders uses lithium-based battery technology.

Tesla recently made headlines for its attempt to start lithium-ion battery production at its new Gigafactory in Nevada. The Gigafactory is projected to employ 6,500 full-time workers by 2018 and singlehandedly double the world’s production capacity for lithium-ion batteries, according to Tesla.

In addition to investing in companies that produce lithium batteries, LIT also invests in lithium mining operations. Assets under management for LIT total $207 million.

The expense ratio is 0.75%, but it does offer a 0.61% dividend yield to help offset that fee. Over the last 12 months, the fund has returned an incredible 30% as the lithium phenomenon truly took off. Returns in prior years weren’t nearly as strong, compared to the show of sudden vivacity in the momentum-gaining lithium-ion battery trend.

Top holdings for LIT include FMC Corp. (FMC), 24.70%; Sociedad Quimica y Minera (SQM), 14.90%; Samsung, 6.32%; Tesla Motors (TSLA), 6.04%; and Albemarle Corp. (ALB), 5.02%.

If you believe the trend upwards in the lithium battery industry and related technologies is only just beginning, Lithium & Battery Tech ETF (LIT) could be a strong position for your portfolio.

Exclusive  Holding On Tight... and Hedged

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

Each week, I will be providing my favorite conservative and aggressive recommendations for my VIP Alliance members. Each of these is an existing recommendation from my investment and trading services, but ones that I feel are particularly timely. I. Conservative Recommendation Berkshire Hathaway (BRK-B) A recommendation in both Smart Money Masters and the Alpha Algorithm, Warren Buffett’s investment vehicle is ha

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE