- The red-hot Global X Lithium ETF (LIT -1.5%) is off slightly in today's early trading but that follows an all-time high reached yesterday morning, as investors rush in to bet on a coming surge in electric car sales.
- Since the Xinhua newspaper reported Sept. 11 that China may start to wind down production and sales of cars using fossil fuel, investors have poured $143M into LIT, and this Tuesday alone saw nearly $50M in inflows for the now $651M fund - an "extremely rare" display of interest in an ETF, especially one so narrowly focused, says Todd Rosenbluth, director of ETF and mutual fund research at CFRA.
- The cost of a lithium battery has been cut in half over the last three years, leading to an "inflection point" in demand for the metal, says Jay Jacobs, director of research at Global X Funds.
- Tesla (TSLA -0.8%) accounts for nearly 7% of the Global X LIT fund, and FMC Corp . (FMC -1.1%), which has a major lithium producing unit, accounts for nearly 25%; other top holdings include SQM (SQM +1%), Samsung (KS:005930) SDI (OTC:SSDIY), Panasonic (OTCPK:PCRFY) and Albemarle (ALB -1.2%).
Original article