ETFs, also known as exchange-traded funds, act as a type of security that tracks a sector, commodity, or other assets. They can be sold or traded like ordinary stocks. In this article, we explore lithium ETFs and the best options available on the market. (To find out more, click for cryptocurrency ETFs click here)

Lithium is a metal that is commonly used to produce energy due to its high-density energy storage. While the earth possesses an abundance of lithium it often costs high sums to extract. However, with the increasing need for sustainable energy and the digitalization of the world, lithium batteries are needed to power mobile phones to laptops to Teslas. According to finance.yahoo.com, lithium prices have soared 240% in the year 2021. Thus making it a lucrative investment.

Best Lithium ETFs in the Market

A few of the best lithium ETFs available for investment include:

LIT

Global X Lithium & Battery Tech ETF, commonly known as LIT, easily takes the spot for one of, if not the best lithium ETF. LIT tracks the Solactive Global Lithium Index which analyses the performance of a range of companies in the industry. Unlike other lithium ETFs, LIT consists of companies that mine and refine the metal as well as those involved in the production of batteries. Thus giving investors a broader exposure to the industry.

The year-to-date return of LIT stands at 48.5% with up to $5.33 billion in net assets. The ETF also has an expense ratio of 0.75%. The top three LIT holdings include Albemarle Corp., Class A shares of EVE Energy Co. Ltd., and TDK Corp.

BATT

BATT, also known as Amplify Lithium & Battery Tech ETF, tracks the EQM Lithium & Battery Technology Index. This index analyses the performance of companies that produce lithium batteries.

The ETF has a year-to-date daily total return of -5.75% and contains more than $162 million in assets under management. It also acts as one of the premier holdings for Tesla Inc. along with its other two holdings BHP Group Limited and Contemporary Amper.

ACDC

ACDC ETF is also known as ETFs Battery Tech and Lithium ETF. Similar to LIT, it tracks the performance of the Solactive Battery ValueChain Index. However, unlike other lithium ETFs, ACDC aims to expose investors to equally weighted large and mid-cap global equities.

ACDC possesses a year-to-date total return for one year of 17.16%. It also has more than $500 million of assets under management. The top three holdings of ACDC include Mineral Resource, Pilbara Minerals, and AMG Advanced MET.

Comparison

ETF	Expense Ratio	Key Holdings	Year to Date Returns
LIT	0.75%	Albemarle Corp., Class A shares of EVE Energy Co. Ltd., and TDK Corp.	48.5%
BATT	0.59%	BHP Group Limited, Tesla Inc TSLA, Contemporary Amper.	-5.75%
ACDC	0.69%	Mineral Resource, Pilbara Minerals, and AMG Advanced MET	17.6%

Conclusion

In conclusion, LIT currently appears as one of the best ETFs in the market for lithium. However, with its increasing demand and growth, we can be sure to see the numbers increase across all Lithium ETFs.