Tap into bat­tery power

Money Magazine Australia - - IN BRIEF -

If you be­lieve in bat­tery stor­age’s po­ten­tial to trans­form the en­ergy mar­ket, there is a new ex­change traded fund that in­vests in bat­tery stor­age and lithium.

ETFS Bat­tery Tech­nol­ogy and Lithium (ASX: ACDC) tracks the per­for­mance of bat­tery tech­nol­ogy stocks and four lithium pro­duc­ers. Lithium bat­ter­ies are a key com­po­nent of lap­tops, smart­phones, tablets and elec­tric cars.

The ETF in­vests in 28 com­pa­nies in­clud­ing lithium pro­duc­ers such as Aus­tralia’s Oro­co­bre, bat­tery pro­ducer Sam­sung SDI, elec­tric ve­hi­cle pioneer Tesla and in­dus­trial spe­cial­ist Toshiba. In ad­di­tion to lithium, it will also in­vest in lead, nickel, sodium and zinc bat­ter­ies.

“En­ergy stor­age is un­der­go­ing a mas­sive trans­for­ma­tion in Aus­tralia and the rest of the world, with lithium con­sid­ered to be one of the light­est and most ef­fi­cient tech­nolo­gies,” said Kris Walesby, head of ETF Se­cu­ri­ties Aus­tralia, a lo­cally owned and in­de­pen­dent ETF provider.

Walesby says its bas­ket of stocks will be re­assessed as other bat­tery tech­nolo­gies such as hy­dro­gen emerge over the longer term.

The new ETF is bench­marked against the Bat­tery Value-Chain In­dex cre­ated by the Ger­man in­dex provider So­lac­tive.

The in­dex has de­liv­ered an an­nual re­turn of 15% over the past five years. The in­vest­ment man­age­ment fee is 0.69%pa.

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