60 second Lithium ETF Analysis

Lithium is essential to electric vehicles batteries, as well as for energy storage in general. Lithium ion batteries have fallen in price by almost 90% from 2010 to 2021. We are getting close to EVs being similarly priced to ICE vehicles.
Global X Lithium & Battery ETF, ticket LIT, invests in companies involved in various parts of the lithium industry including mining, refinement, and battery production. It invests across sectors and geography.
The one thing you can always control is how much you pay for your investment so I concentrate a lot on expense ratios. When I see a 0.75% expense ratio, I’m thinking that is very expensive. Do I really want to pay that much for an investment?
The top holding at 8.55% is Albemarle Corp. This company is exposure to lithium in Chile which is nationalizing the lithium industry. That concerns me.
The second largest holding is Panasonic which is a Japanese conglomerate. This isn’t much of a pure lithium play. It’s more a play on Japan.
The third largest holding is BYD which is a Chinese automobile manufacturer. Even if most of the cars they produce are EVs, this is more of a car maker and EV play than a lithium play.
Overall, I have concerns about this ETF not being really about lithium as it is a hodgepodge of various things that are loosely related by lithium.
Works Cited:
https://www.globalxetfs.com/funds/lit/
Tags:
lithium, lithium etf, ark etf analysis, lithium aktie, lithium aktien, global x lithium, global x lithium &, idrv etf analysis, nio stock analysis, pre market analysis, technical analysis, tesla stock analysis, lithium stocks, analysts, lithium demand and supply, lithium invesment, lithium & battery etf, lithium technology australia, global x battery and lithium etf, lithium and battery etf, global x lithium & battery tech etf, australian battery and lithium etf