eToro: Buy Shares with 0% Commission

Your capital is at risk

Best Battery ETF UK

Disclaimer Fact Checked

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 reviews some of the Popular battery ETFs to invest in as the world migrates to clean energy.

Popular Battery ETF UK 2022 List

Some of the popular ETFs have been listed down below:

  1. Global X Lithium & Battery Tech ETF
  2. L&G Battery Value-Chain Units ETF
  3. Global X Autonomous & Electric Vehicles ETF
  4. Amplify Lithium & Battery Tech ETF
  5. First Trust NASDAQ Clean Energy Smart Grid Infrastructure Index Fund (GRID)

Battery ETFs UK Reviewed

1. Global X Lithium & Battery Tech ETF (LIT)

Global X Lithium & Battery Tech ETF

Global X Lithium & Battery Tech ETF is one of the most popular battery ETFs, 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 the largest 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

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%).

3. Global X Autonomous & Electric Vehicles ETF (DRIV)

Global X Autonomous & Electric Vehicles ETF (DRIV)

DRIV is a high-performing battery ETFs in the industry currently, 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 biggest position of the ETF’s holdings. DRIV tracks the performance of the Solactive Autonomous & Electric Vehicles Index.

4. Amplify Lithium & Battery Tech ETF (BATT)

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.

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

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.

What are Battery ETFs?

Finding popular ETFs is never an easy task. Moreso, the popular Battery ETFs. Battery ETFs are similar to popular Platinum ETFs or 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 currently, 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.

Are Battery ETFs a Valuable Investment?

EV companies like Tesla have become hugely successful due to their proven battery technology. With the supercharge option 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. However, the sector is still plagued with uncertainty, so users should make sure to conduct their own research before investing in any ETFs.

Where to Purchase Battery ETFs

If you are interested in purchasing battery ETFs, you may be wondering which platform allows investors to do so. In the sections below, we review two popular stock brokerages that allow users to invest in this sector.

1. eToro

eToroSocial trading leader eToro is a popular destination for battery-facing ETFs, with over 26 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.

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 high-performing industries and regions.

eToro is also regulated by global bodies like the FCA, ASIC, CySEC, and FINRA, which means your funds and details are always safe. With a minimum investment of only $10, eToro allows users to begin trading with very less capital.

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.

Stock Broker Minimum Deposit Fractional Shares? Pricing System Cost of Buying Stocks & ETFs Fees & Charges
eToro $10 Yes – $10 minimum 0% commission on ALL real stocks, spreads for CFDs Market spread is not included when buying real stocks No Deposit fees, $5 withdrawal fee, $10 inactivity fee, no account management fees.

Sponsored ad. 68% of retail investors lose money trading CFDs at this site

2. Libertex

Another stock broker that allows you 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 the trading services it provides.

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.

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, you can begin investing in the sector with your preferred stock broker. After picking your trading platform, you can begin trading in 4 simple steps.

Step 1: Open Your Trading Account

Head over to the homepage of your chosen broker and begin the account set-up process. You will be required to fill in your personal details – including your full name, email address and mobile number. Create a username and password for the platform to continue.

Step 2: Complete the Verification Process

Most reputable brokers in the UK are regulated by the FCA – which is why users may be required to verify their accounts. To do this, simply upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). Once these documents have been uploaded, your broker should verify them in a couple of minutes.

Step 3: Deposit Your Funds

The next step is to deposit funds into your trading account. Most brokers may support 1 or more of the following payment methods:

  • Credit card
  • Debit card
  • Bank transfer
  • e-wallet

Choose your preferred payment option and deposit the funds into your account.

Step 4: Invest in Battery ETFs

Once your account has been funded, proceed to search for the available battery ETFs wish to purchase on your platform’s search bar. Fill in the amount you want to credit into the trade, and confirm your transaction.

Conclusion

The Battery sector may be one that provides growth in the coming years. From the popular ETFs we reviewed, users should make sure to conduct their own research and analysis prior to investing in any asset.

If you would like to invest in Battery ETFs, you should do so using a reputable stock broker that caters to your investing needs.

FAQs

Is there an ETF for battery stocks?

What is L& G battery value chain?

Is Batt ETF actively managed?

Where to purchase Battery ETF UK?

Jimmy Aki author check sign 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.

RECOMMENDED BROKER

Join eToro for 100% stocks, 0% commission

  • 0% Commission and No Stamp Duty
  • Regulated by US, UK & International Stocks
  • Copy Successful Traders
Visit Etoro
Your capital is at risk.