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Best Battery ETF UK – Compare Top ETFs 2021

Battery ETFs are gaining more attention from investors as the world transitions to electric vehicles (EVs) and other battery-powered devices. The renewable energy industry is even projected to hit a $1.1 trillion market cap by 2027. This guide discusses some of the best battery ETF to invest in as the world migrates to clean energy.

Best Battery ETF UK 2021 List

Some of the best ETFs with good investment potentials have been listed below this section.

  1. Global X Lithium & Battery Tech ETF – Overall Best Battery ETF Based On Growth Potential – Invest Now
  2. L&G Battery Value-Chain Units ETF – Top Battery ETF With Low Management Fee – Invest Now
  3. Global X Autonomous & Electric Vehicles ETF – Best Battery ETF For Dynamic Exposure – Invest Now
  4. Amplify Lithium & Battery Tech ETF – Battery ETF For Popular EV Automaker
  5. First Trust NASDAQ Clean Energy Smart Grid Infrastructure Index Fund (GRID) – Battery Technology ETF For Clean Energy Exposure

Best Battery ETFs UK Reviewed

1. Global X Lithium & Battery Tech ETF (LIT) – Overall Best Battery ETF Based On Growth Potential

Global X Lithium & Battery Tech ETF

Topping our battery ETF list is Global X Lithium & Battery Tech ETF UK, with over $5.08 billion in assets under management (AUM). LIT is the largest battery ETF in the world. It boasts exposure to over 40 companies interfacing with the lithium and battery sector.

25% of its holdings are in lithium mining giant Charlotte-based Albemarle Corp and Chinese mining giants Ganfeng Lithium Co. Ltd and Yunnan Energy. LIT offers exposure to top sectors, including materials (47.9%), industrials (27.4%), information tech (12.2%) and consumer discretionary (11.9%).

Following the surge in EV interest amid global climate change, the Global X Lithium & Battery Tech ETF has grown 96% in the past year with more growth opportunities. With such a dynamic exposure to promising materials like lithium and other precious metals, LIT currently changes hands at $88.70 and is up 0.38% in the last 24 hours. Investors in the battery ETF will have to pay 0.75% in fees.

68% of retail investor accounts lose money when trading CFDs with this provider.

2. L&G Battery Value-Chain Ucits ETF – Top Battery ETF With Low Management Fee

L&G Battery Value-Chain Ucits ETF

The L&G Battery Value-Chain Ucits ETF (herein noted as ETF) aims to track the performance of a basket of companies that produce electro-chemical energy storage tech and mining companies that manufacture metals used in making batteries. It directly follows the Solactive Battery Value-Chain Index coverage of these companies.

With over $842.6 million in fund size, the battery ETF offers full replication and a low management fee of only 0.49%. Aside from this, it is also flexible and is ideal for investors who want their investments to form part of their existing savings plans.

Looking to capture the growth of battery tech, L&G Battery Value Chain Ucits ETF has posted over 82.17% in net assets volume against the benchmark index figure of 84.13%. This ETF grew 106.33% in the past three years, showing a strong bullish potential amid the growing interest in battery tech.

L&G Battery Value-Chain Ucits ETF offers exposure to critical sectors like industrials (36.4%), consumer discretionary (29.2%), materials (18.9%), information tech (12%), and communication services (3.4%).

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Global X Autonomous & Electric Vehicles ETF (DRIV) – Best Battery ETF For Dynamic Exposure

Global X Autonomous & Electric Vehicles ETF (DRIV)

DRIV is one of the best performing battery ETFs in the industry right now, though it is not a pure-play ETF on lithium and battery stocks. It has an expense ratio of 0.68%, which is pretty reasonable for a battery ETF like Global X Autonomous & Electric Vehicles ETF.

Aside from interfacing with battery tech, DRIV offers broad exposure to tech giants, automakers, semiconductor companies, and EV suppliers. It has over $1 billion in AUM with key holdings in 76 companies, including Alphabet, Microsoft, NVIDIA, and Apple.

Auto-giants like Tesla and Toyota make up the top position of the ETF’s holdings. DRIV tracks the performance of the Solactive Autonomous & Electric Vehicles Index. With such a dynamic template, DRIV could be a sure battery ETF investment for you if you want diversified exposure to the booming clean energy space.

68% of retail investor accounts lose money when trading CFDs with this provider.

4. Amplify Lithium & Battery Tech ETF (BATT) – Battery ETF For Popular EV Automaker

Amplify Lithium & Battery Technology ETF

Based on the EQM Lithium & Battery Technology Index, BATT aims to track the performance of companies focused on the development, production, and use of lithium battery technology. It offers exposure to popular US EV automaker Tesla with a 7% stake.

Others are lithium miners Contemporary Amper and BHP Group Ltd with 6.92 and 5.57%, respectively. Additional holdings under the scope of BATT are in Yunnan Energy, Ganfeng Lithium Co and Albemarle Corp.

However, BATT is the smallest battery ETF and boasts only $200 million in net assets value (NAV). It has an expense ratio of 0.59% and currently trades at $19.02.

68% of retail investor accounts lose money when trading CFDs with this provider.

5. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) – Battery Technology ETF For Clean Energy Exposure

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID)

Known simply as GRID, this battery ETF tracks the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. It does not offer diversification, and a large chunk of the funds (about 90%) is invested in the stocks in the underlying index.

GRID only boasts a little bit more NAV than BATT and has over $373 million in AUM. It has shown remarkable growth so far this year and has a year-to-date return of 12.9%.

The expense ratio is pegged at 0.7%, and the asset has since shot up in value and trades at $97.96. In terms of exposure, GRID has holdings in Texas-based power infrastructure company Quanta Services, Inc.

68% of retail investor accounts lose money when trading CFDs with this provider.

What are Battery ETFs?

Finding the best ETFs is never an easy task. Moreso, the best Battery ETFs. Battery ETFs are similar to the best Platinum ETFs or the best Gold ETFs that we’ve covered. These investment products track the performance of an index or a sector.

Battery ETFs are exchange-traded funds that track the performance of global companies focused on the development, production and subsequently marketing of battery tech and EVs. They also cover software providers, semiconductor suppliers, component and part manufacturers, battery producers, and lithium miners.

With mobility being a critical area of focus now, more interest is being paid to environmentally-friendly mobility options, which are expected to move the new global economy.

Battery Cells

Battery ETFs have since spiked in value, with LIT stock growing over 90% year-to-date (YTD). The International Energy Agency (IEA) report estimates that consumers spent over $120 billion in EV purchases in 2020, reflecting a 50% increase from the 2019 estimate.

More automobile companies plan to go fully electric in the coming years, including Volvo, Jaguar, Ford, and even General Motors. This support base for EV shows that battery ETFs are some of the best means to build a substantial investment portfolio in the coming years.

Are Battery ETFs a Good Investment?

EV companies like Tesla have become hugely successful due to their proven battery technology. With the supercharge option now being offered for Tesla vehicles, consumers can afford to drive into a charging station and leave with a full tank in record time. Market demand for battery-building materials is likely to reach critical levels in the coming months as global economies divert to cleaner energy sources.

Battery ETFs provide a unique and easy means to interface not only with several global companies dealing in battery tech. With such a wide array of appeal, battery ETFs are seen by several investors as a great means to key into the next pool of investment for the coming years.

Where to Buy Battery ETFs

If you are interested in buying battery ETFs, you may be wondering which platform offers the best exposure to this sector. We highlight two of the best platforms to buy battery ETF easily and quickly.

1. eToro – Overall Best Platform to Buy Battery ETFs

eToroSocial trading leader eToro is a top destination for battery-facing ETFs, with over 20 million active users spread across 150 countries. eToro offers zero-commission trades for stocks and ETFs.

It also gives exposure to FX currency pairs, bonds, commodities, cryptocurrencies, and several traditional investment opportunities.

The uniqueness of the eToro platform lies in its CopyTrade and CopyPortfolio functions. With CopyTrade, new users can copy successful traders’ investment movements. This feature helps investors minimise the potential risk to their capital while still providing a window to learn how the market operates.

etoro home
The CopyPortfolio functionality assists investors to diversify their portfolios. The in-house managed tools automatically to re-balance the funds of investors across several top-performing industries and regions.

eToro is also regulated by tier-1 global bodies like the FCA, ASIC, CySEC, and FINRA, which means your funds and details are always safe. With a minimum investment of only $200, you can get started on eToro.

The social trading platform also offers a large reservoir of payment methods. You can fund your account with your bank wire transfer, PayPal, Skrill, Neteller, credit/debit cards, Sofort, etc.

Pros:

  • Offers exposure to over 17 global markets
  • Offers free commission for trading battery ETFs
  • Multiple payment methods
  • Highly regulated broker
  • CopyTrade functionality
  • Reputable trading platform

Cons:

  • Withdrawal fee of $5 for overall withdrawal requests

68% of retail investor accounts lose money when trading CFDs with this provider.

2. Libertex – Top ETFs CFD Broker with Zero Spreads

Another top option to invest in battery technology ETFs is Libertex. Operating out of Cyprus, Libertex is a global CFD broker with over 2.2 million users. The platform is regulated by the CySEC and has won several awards for trading services excellence.

Libertex operates as a CFD broker and enables trades in currency pairs, commodities, stocks, bonds, ETFs, and cryptocurrencies. Libertex offers a high-speed, cutting-edge trading experience with mobile and web trading platforms that provide a similar user experience.

libertex

However, Libertex has a low financial market penetration with only 250 instruments on offer. However, the platform offers a $50,000 demo account for new beginners to try their hands on and a low brokerage fee of only 0.006%.

The broker also offers negative balance protection with a maximum leverage of 30:1 for retail investors. The minimum deposit is pegged at $20 or 20 Euro with payment options ranging from bank wire transfer, credit/debit cards, Skrill, Trustly, GiroPay, Neteller, and several others.

Pros:

  • Heavily regulated by the CySEC
  • Low minimum deposit bar
  • Vast retinue of supported payment options
  • Demo account with virtual cash
  • Reputable trading platform with super-competitive fees

Cons:

  • CFD trades only
  • Limited market exposure

74% of retail investor accounts lose money when trading CFDs with this provider.

How to Invest in a Battery ETF

Now that you have learnt about battery technology ETFs and the best trading platforms, we will discuss the steps involved when investing in a battery ETF using the eToro platform.

Step 1: Create an account

etoro sign up

68% of retail investor accounts lose money when trading CFDs with this provider.

The first step is to head over to the eToro platform and register for a free account. You can do this by clicking on the ‘Join Now’ button in the top right-hand corner. This will take you to the signup page, where you can fill in your full name, email address, phone number, username and choose a password. You can also register with your Google or Facebook account.

Step 2: Upload ID

Like all reputable brokers, eToro requires users to complete the know your customer (KYC) process. All these can be completed online, and you can submit a snapshot of your driver’s license or national ID card. You will also need to submit your proof of residence via a copy of your utility bill or bank statement.

Step 3: Deposit Funds

eToro requires a $200 minimum deposit, and you can pay through:

  • Bank wire transfer
  • Credit/debit card
  • PayPal
  • Skrill
  • Neteller
  • Sofort
  • Trustly
  • iDEAL

eToro requires a minimum deposit of $50 to get started. Once your deposit is confirmed, it’s time to buy your first ETF.

Step 4: Buy LIT

Buy LIT Best Battery ETfs

We will be using LIT for our example. To buy this top-ranking battery ETF on eToro, all you have to do is type in ‘LIT’ and click ‘Trade’ on the first result that pops up. You will be redirected to the order page, where you can input the amount you want to invest.

eToro – Buy Battery ETFs with 0% Commission

Battery ETFs are some of the best means to enter into the booming battery tech space. With major automobile companies now diverting to battery-powered and hybrid vehicles, the importance of battery ETFs will only continue to rise with time. If you are looking for a reputable broker to buy a battery technology ETF, we recommend eToro.

eToro is an FCA-regulated broker that continues to attract millions of customers globally due to its ease of use, large investment asset options and the lowest fees in the industry. eToro simplifies the stock trading, cryptocurrencies and ETFs at zero commission.

When it comes to investing in Battery ETFs, you only pay the expense ratio charged by the ETF provider and nothing more. In addition, the minimum deposit for investing in ETFs on eToro is $50 and the value of the purchased ETF can always be monitored 24/7 from your eToro portfolio.

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68% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

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About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.

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