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Best Lithium ETFs to buy in 2022
Demand for lithium has continued to surge thanks to its application in EVs and batteries. Investing in lithium ETFs is one of the easiest ways to ride its growing trend. Read on to learn about our investment analysts’ top lithium ETF picks for this year.
What are the top lithium ETFs to buy?
Our expertly selected lithium ETFs are in the table below. You can use their ticker symbols to find them on your broker account, or continue scrolling to learn more about each in detail.
|#||ETF symbol||ETF name|
|1||LIT||Global X Lithium and Battery Tech|
|2||BATT||Amplify Lithium and Battery Technology ETF|
|3||CHRG||WisdomTree Battery Solutions UCITS ETF|
|4||ARKQ||ARK Autonomous Tech. & Robotics ETF|
|5||QCLN||First Trust Nasdaq Clean Edge Smart Green Energy ETF|
1. Global X Lithium and Battery Tech (NYSEARCA: LIT)
The LIT fund invests in a range of companies and is a top option for investors wanting exposure to the full lithium cycle. Its holdings cover all aspects of lithium, from miners to battery producers and everything in between. Founded in 2010, LIT seeks to track the performance of the Solactive Global Lithium index.
The Global X Lithium and Battery Tech ETF has over $4.5 under management and includes stocks from all over the world. However, the majority of the fund is invested in USA and Chinese based companies where 60% of its holdings reside. It operates a tired weighting system meaning it allocates more money to companies it has the most confidence in.
LITs top ten holdings amount to over 50% of the fund. Some of the largest lithium stocks in the world are included in it. Its top two are miner/producer Albemarle and EV manufacturer, Tesla. Other notable companies include BYD, Samsung, and Quimica. Its exposure to the best lithium stocks has seen its price surge by more than 400% since 2020.
2. Amplify Lithium and Battery Technology ETF (NYSEARCA: BATT)
BATT is a new fund and was only created back in 2018. Compared to the Global x above, it’s much smaller in size, with just 87 holdings and net assets of around $200 million. It tracks the performance of the EQM Lithium & Battery Technology Index and invests in stocks that generate revenue from the development, production and use of lithium battery technology.
Amplify’s fund invests in companies globally although has a heavy weighting towards the Asian lithium market. It invests in a variety of companies and includes a number of well known electric vehicle manufacturers. Tesla, BYD, and Rivian Automotive are some of the fund’s biggest investments.
Since its inception in 2018 its price has experienced big swings. In its first 18 months of trading it lost 70% in value, however when the lithium bull run started in 2020, it was able to regain its losses. BATT may not be as large as other lithium ETFs however it gives investors a good option to play the lithium battery market, which is only expected to grow in the future.
3. WisdomTree Battery Solutions UCITS ETF (LSE: CHRG)
The WisdomTree Battery Solutions is another newly created ETF. Launched in 2022, it aims to track the performance and price of the WisdomTree Battery Solutions Index by investing in companies working within the battery technology sector.
Like most lithium based funds, a lot of the companies it holds reside in the USA or China. Almost half the the ETF is weighted to these two regions. Some of its top holdings are lithium battery manufacturers like Simplo technologies and Enersys. Its top ten investments amount to only 30% of its total holdings, so it’s more equal than other ETFs on our list.
CHRG came to the market at the perfect time. Since its inception in March 2020, it’s mostly moved in one direction, upwards. Despite a slight dip in price in its first few weeks, it has gone on to rally by over 100% in the time since. As it targets battery companies it includes a lot of holdings that are not direct lithium plays, making it a more diverse ETF.
4. ARK Autonomous Tech. & Robotics ETF (NYSEARCA: ARKQ)
ARKQ is another ETF that is not directly focused on lithium, but does give exposure to it through many of its holdings. The fund invests in a number of different sectors and includes some of the world’s top electric vehicle businesses. Tesla, BYD, Nio, and Niu technologies are its four biggest lithium based investments.
Alongside the EV market, it invests in robotics, 3D printing, energy, and space, offering investors easy access to a wide range of growth industries. While it spreads its investments globally, the majority of the fund belongs to US based companies. Its top ten holdings amount to over 50% of its total, with its largest investment, Tesla making up 10% of the fund.
Since its inception in 2014 its performance has been solid and in early 2021 it reached its all time high. Although ARKQ doesn’t offer a pure play lithium investment, its diverse portfolio offers a lot of opportunity in high growth markets. Many of its investments rely on lithium batteries and the fund offers an indirect way to invest in the commodity.
5. First Trust Nasdaq Clean Edge Smart Green Energy ETF (NASDAQ: QCLN)
Final spot on our list goes to the First Trust Nasdaq Clean Edge Smart Green Energy ETF. It’s another fund that does not track lithium companies only, but rather the wider clean energy sector. Around 20% of the fund invests in the automobile industry, which in QCLNs case, means the electric vehicle market.
Through the ETFs investments in many of the world’s leading EV manufacturers, investors gain access to lithium. Infact, its two top holdings give a lot of exposure to lithium. Its largest investment is Tesla, followed by lithium company Albemarle corporation. Other notable lithium investments include, Nio and xPeng, both of which are included in its top ten.
Its performance replicates that of the clean energy industry, which in recent years has seen a surge in popularity. From 2020 to 2021 the fund grew by 400% before giving back some gains coming into 2022. With nearly $3 billion under management, QCLN is the second largest fund on our list.
Where to buy the best lithium ETFs
The best lithium ETFs can be bought through an online broker. Our investment experts have selected some of the top platforms around offering lithium ETFs which you can find in the table below. Just click on any of the links to get started in a few minutes.
What is a lithium ETF?
It’s an exchange traded fund that invests in companies that generate large portions of their revenues from lithium. Exchange traded funds are available to buy on the stock market and you’re able to buy shares in them through a stock broker. Each fund usually tracks the performance of a specific industry or index.
There are very few ETFs that focus specifically on lithium. However there are many that include lithium companies as major holdings in their portfolios. Eclectic vehicle manufactures are a popular way to benefit from lithium prices as they use the commodity to power their cars.
Are lithium ETFs a good investment?
Yes they can be, especially if recent history is anything to go by. The price of lithium has surged in recent years and that’s largely due to its use in batteries. The popularity of electric vehicles has also benefited the price of lithium. The EV market is expected to continue growing as traditional car makers move into the space.
By 2027 the lithium market is expected to grow to $4.93 billion, up from $3.39 in 2020 and investing in ETFs that focus on it, is one of the easiest ways to ride its anticipated growth. If you do decide to buy a lithium ETF you’ll need to register with an online broker. It’s also a good idea to keep up to date with the latest news which you can do on the links below.
Latest lithium news
Bitcoin and the Dow meet in middle and close in on $30K
Jack Dorsey: ‘Block Inc is no longer just a payments company’
Analog Devices tops fiscal Q2 2022 earnings and revenue estimates
Mastercard launches new technology that will allow its users to make payments using their hand or face
Bitfarms (BITF): HC Wainwright reaffirms Buy Rating with a price target of $7
Mark Mahaney reveals the ‘most insulated’ big cap tech stock
Fact-checking & references
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