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Best Lithium ETF UK – Compare Top ETFs 2021

If you are looking to invest in lithium, an ETF is one of the best ways to do that. There are several lithium ETFs available in global financial market and in this guide, we’ll help you find some of the most popular lithium ETFs in the market, suggest top UK brokers that offer you to buy these ETFs, and show you how the full process of how to invest in lithium ETFs in the UK.

Best Lithium ETF UK 2021 List

Below, we review each one of the most popular lithium ETFs in the market, however, if you want to get into the game quickly, here’s a quick overview of the best lithium ETFs for UK investors to consider.

  1. The Global X Lithium & Battery Tech ETF (NASDAQ: LIT) – Overall Best Lithium ETF UK – Invest Now
  2. ETFs Battery Tech & Lithium ETF (ASX: ACDC.AX) – Best Lithium ETF for Energy Investment – Invest Now
  3. Amplify Lithium & Battery Technology ETF (NYSE: BATT) – Best High Rating Lithium ETF – Invest Now
  4. First Trust Nasdaq Clean Edge Smart Green Energy ETF (NASDAQ: QCLN) – Best Green Energy ETF
  5. WisdomTree Battery Solutions UCITS ETF USD Acc (LSE: CHRG.L) – Lithium ETF with the Highest Dividend Yield 

Best Lithium ETFs UK Reviewed

As you can see from our list above, there’s a variety of ETFs that allow you to get exposure to lithium-related stocks. Each ETF has its own specific considerations and targets different asset allocation.

To make things clearer for you, we have reviewed each one of the best ETFs, including past price performance, future outlook, and more.

1. The Global X Lithium & Battery Tech ETF – Overall Best Lithium ETF UK

Undoubtedly, the Global X Lithium & Battery Tech ETF is the best option for investors in order to get exposure to a variety of lithium-related stocks. This fund was founded in 2010 and tracks the performance of global lithium miners and battery producers. By many opinions, the Global X Lithium & Battery Tech ETF is by far the most effective way to get exposure the lithium because the fund simply tracks the full lithium cycle, from mining companies to battery production companies. As such, the fund holds companies like Albemarle Corp (12.55%), Ganfeng Lithium Co Ltd (6.07%), EVE Energy Co Ltd (5.45%), Sociedad Quimica Y Minera De Chile SA ADR (4.82%), Tesla Inc (5.21%), etc.

Overall, the fund has a total number of 40 holdings, and a total net asset of around $2.8 billion as of March 2021. The fund essentially aims to track the performance of the Solactive Global Lithium Index, which is designed to measure the market performance of global lithium-related companies and is sort of the benchmark of the lithium market. This ETF has a net expense ratio of 0.75%, which is considered a good expense ratio.

In terms of market performance, this ETF has been on fire since the coronavirus pandemic crisis started in late March 2020. Back then, the fund fell from around $30 per share to a four-year low of $18.70. But, in line with the market recovery, the Global X Lithium & Battery Tech ETF gained over 220% in the past year, rising from around $19 per share to its current price of $59. During this time, the ETF has also reached its all-time high of $74.8.

the Global X Lithium & Battery Tech ETF all time chart

Finally, another reason why the Global X Lithium & Battery Tech ETF is the most popular lithium ETF is that it also pays annual dividends for investors that hold the fund. It has a yearly dividend yield of around 0.41%, which is a great bonus in the low-interest-rate environment.

Your capital is at risk.

2. ETFs Battery Tech & Lithium ETF

Australia is the world’s top producer of lithium and as such, it is not a surprise that you can find lithium ETF that trades on the Australian Securities Exchange. This ETF is focused on public traded companies involved in the full supply chain and production for batteries and lithium mining. Some of the main holdings of this ETF include Pilbara Minerals, Galaxy Resources Ltd, Renault SA, Tesla (TSLA), Tianneng Power International Ltd, Liven Corp, etc.

It’s worth mentioning that the fund is not very liquid (an average volume of 21,000), which might be a problem if you decide to day trade this ETF or use a short-term investment strategy. However, if you decide to make a long-term investment in ETFs Battery Tech & Lithium ETF, then it should not be a concern.

ETFs Battery Tech & Lithium ETF all time chart

Unlike other ETFs on our list, ETFs Battery Tech & Lithium ETF has a modest market cap (net assets) of just around AUS$78 million. Nonetheless, investors can also expect an annual dividend yield of around 0.9%, and, over the past year, this ETF has generated a good return of nearly 60% and a return of slightly above 10% since the beginning of the year. Additionally, the fund also has a fairly low annual expense ratio of 0.82%.

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3. Amplify Lithium & Battery Technology ETF

Another ETF that tracks lithium-related stocks is the Amplify Lithium & Battery Technology ETF (NYSE: BATT). This fund is managed by Amplify Investments LLC and tracks the market performance of the EQM Lithium & Battery Technology Index. In terms of the expense ratio, Amplify charges an annual rate of just 0.59%.

Simply put, this ETF invests in battery materials and technology companies. This means you indirectly invest in companies like BHP Group Ltd ADR, Tesla, Nio, Contemporary Amperex Technology Co Ltd Class A, Glencore, Mining and Metallurgical Company NORILSK NICKEL PJSC ADR, etc. It also has a high Rating of A based on the MSCI ESG Fund Rating.

Amplify Lithium & Battery Technology ETF all time chart

A quick look at the chart shows that Amplify Lithium & Battery Technology ETF is perhaps the most stable and less volatile lithium ETF on our list. That said, the fund has generated a 1-year return of 84% though it has a negative return of -2.25% in 2021.

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4. First Trust Nasdaq Clean Edge Smart Green Energy ETF

The First Trust Nasdaq Clean Edge Smart Green Energy is another ETF that gives you exposure to lithium companies. Although this ETF does not track lithium and tech battery companies only and is more focused on green energy and electric vehicle manufacturers, there’s also some exposure to lithium-related stocks. This includes companies like Albemarle Corp, Nio, and Tesla.

In terms of market performance, this ETF has generated a return of nearly 280% over the last year, making it the top-performing asset from our list over this period. Year to date, however, the fund is down around -3%. Crucially, this ETF is the largest on our list in terms of managed net assets with nearly $3 billion at the time of writing.

First Trust Nasdaq Clean Edge Smart Green Energy ETF all time chart

In terms of the specifics, if you decide to invest in this ETF you’ll have to pay an expense ratio of 0.6% and expect an annual dividend yield of around 0.4%.

Your capital is at risk.

5. WisdomTree Battery Solutions UCITS ETF USD Acc

WisdomTree is one of the world’s leading providers of exchange-traded funds with more than 68 ETFs traded on the U.S. market only and $42.28 billion under their asset management. One of their ETFs is the WisdomTree Battery Solutions UCITS ETF USD Acc that is listed on various exchanges including the London Stock Exchange (LSE) under the ticker symbol CHRG.L (GBP) or VOLT.L (USD). 

Simply put, the WisdomTree Battery Solutions UCITS ETF seeks to track the market performance of the WisdomTree Battery Solutions Index. As such, the ETF holds stocks like Plug Power Inc, Ganfeng Lithium Co Ltd, Livent Corp, Contemporary Amperex Technology Co Ltd Class A, and more.

This ETF has a total market capitalization of nearly £19 million and an extremely low expense ratio of just 0.40%. The fund was established in April 2020 and since then, it has gained slightly over 100%.

WisdomTree Battery Solutions UCITS ETF USD Acc chart

Best of all, the WisdomTree Battery Solutions UCITS ETF has an annual dividend yield of 1.29%, which is the highest among all the lithium ETFs in the market.

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Are Lithium ETFs a Good Investment?

When we take all factors into consideration, lithium is expected to be one of the most important materials in the next decades. This is because lithium is widely used in electronic devices batteries like mobile phones, laptops, tablets, etc. But more importantly, the rapid growth of the electric vehicle market around the world will have a huge impact on lithium-related mining and production companies.

Currently, as investors cannot directly invest in lithium as a commodity since it is not traded on any futures trading exchange, the best option to invest in lithium is by buying an individual lithium stocks UK or invest in a lithium ETF that enables users to get the diversification of lithium public traded companies.

When we analyze the lithium market, most analysts expect to see continued growth for lithium, particularly given the fact that electric vehicles such as Tesla are going to become a common sight on our roads in the near future. If, indeed, the demand for lithium will grow exponentially in the upcoming years, ETFs are simply the best way to invest in lithium as they allow users to invest in the full cycle of lithium by holding stocks of mining, refining, and producing companies.

Best Lithium ETF UK Investment Platforms 2021

If you have set your mind on buying a particular lithium ETF, the next thing you need to do is to find a regulated brokerage firm in the United Kingdom offering you to trade US and global listed ETFs.

To help you find the right platform, below we analyze two of the most popular online trading platforms and investment apps in the UK that enable you, among other assets, to buy and sell lithium ETFs.

1. eToro – Invest in lithium ETFs with 0% Commission

eToro commodity brokereToro is perhaps the best option available for UK investors that want to get access to lithium ETFs. This FCA-regulated broker is known as the largest social trading platform in the world with more than 17 million members that can trade and buy shares, as it offers over 3000 financial instruments from various markets. This includes FX currency pairs, stocks, ETFs, indices, commodities, and cryptocurrencies.

The reason why eToro is, in our view, the best trading platform for investing in ETFs is because it offers a zero commission trading model on a wide range of 249 Exchange Traded Funds from different stock exchanges in the world. These ETFs can be traded with a margin requirement of just 20%, meaning a leverage ratio of 5:1.

eToro best lithium ETFs uk

In terms of lithium ETFs, eToro offers the most liquid and traded lithium-related ETF in the world, the Global X Lithium & Battery Tech ETF. Best of all, when you buy and sell this ETF on the eToro platform, the broker does not charge any trading commissions. You’ll also get access to effective analysis and research tools such as a news feed specifically related to this ETF, interactive chart, important stats, and research section.

eToro Global X Lithium & Battery Tech ETF best lithium etf

67% of retail investors lose money trading CFDs at this site

Besides the Global X Lithium & Battery Tech ETF, eToro also offers a great selection of individual lithium related stocks such as Albemarle Corporation (NYSE: ALB), EnerSys (NYSE: ENS), Energizer Holdings, Inc (NYSE: ENR), FMC Corporation (NYSE: FMC), and more. Much like ETFs, buying shares with eToro is commission-free, meaning you’ll have to pay the bid and ask spread only. Also, unlike traditional brokerage firms in the UK, eToro does not charge account management fees nor deposit fees.

Best of all, eToro supports a range of social trading tools. Being the largest social trading network in the world, eToro offers users to get access to the CopyTrade tool that enables you to choose another investor within the network and automatically copy the trades of the chosen investor. Additionally, you’ll be able to invest in built-in managed portfolios based on a specific industry, region, or theme.

eToro CopyTrade Investors

In terms of the account creation process, you’ll have to sign up and create an account with eToro. Then, once you verify your identity, you can make a deposit of at least £140 by using one of the supported payment methods. This includes debit and credit card, bank wire transfer, PayPal, Neteller, and Skrill.

Pros:

  • Best platform for beginner investors
  • Huge range of ETFs, including lithium related ETFs
  • Besides ETFs, eToro offers trading on stocks, indices, commodities, forex, cryptocurrencies and more
  • More than 2400 stocks listed on the London Stock Exchange and 16 international markets
  • Deposit funds with a debit/credit card, bank wire transfer, and e-Wallet like PayPal.
  • Features the CopyTrade tool and built in CopyPortfolios
  • Regulated by the Financial Conduct Authority (FCA)

Cons:

  • Not suitable for advanced traders that like to perform technical analysis

67% of retail investors lose money trading CFDs at this site

2. Fineco Bank – A Vast Range of ETFs with Low Trading Fees

Fineco logoWhile eToro is widely known for its social trading platform and cost-effective pricing structure, Fineco Bank is the ideal option for investors that want to get direct access to stocks and ETFs markets with advanced trading platforms. Though the Italian brokerage firm is also offering users to trade on CFDs, the great thing about Fineco Bank is that it gives users access to various stock markets, including a huge range of ETFs.

As such, you’ll be able to trade ETFs in the form of CFDs that is completely commission-free. Or, you can choose to trade ETFs directly via the US stock exchange, which means you’ll have to pay o fixed fee of £2.95 per trade. In addition, there’s an annual fee of 0.25% by the brokerage firm.

Fineco Bank offers a web-based platform for beginner investors that is also available as a mobile app. But the big strength of this brokerage firm is the PowerDesk trading platform, which is an advanced platform for professional active traders.

Fineco Bank PowerDesk

Although Fineco Bank is not a commission-free platform like eToro, it offers a cost-effective solution for ETF trading. This stock broker provides low stock and ETF fees of £2.95 per trade and enables users to choose a fixed plan and consider paying a flat monthly fee.

In terms of the safety of funds, Fineco Bank is regulated and licensed by the FCA in the UK and ensures investors funds’ are protected by the FSCS in case the broker goes bankrupt. To get started, Fineco Bank requires users to deposit at least £100 though you can get started with a demo account before risking real capital.

Pros

  • Charges a fee of £2.95 per trade when trading ETFs and stocks
  • Access to thousands of UK and international shares and ETFs
  • Deposit funds with a UK bank account
  • FCA regulated
  • Suitable for both newbies and seasoned investors
  • Great research and educational department
  • Access to advanced trading platforms

Cons

  • 0.25% annual fee

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How to Buy the Best Lithium ETFs UK

If you’re ready to make an investment in lithium ETF, we are now going to show you the full process of opening an account with our recommended broker eToro, and place an order in the market. In this demonstration, we focus on Global X Lithium & Battery Tech ETF, which is the best lithium ETFs listed on the global stock exchanges.

Step 1: Open an Account with eToro

To get started, you first need to navigate to eToro’s homepage and register for an online trading account. On the broker’s website, click on the ‘Join Now’ button and fill in your personal details on the next page.

eToro homepage

67% of retail investors lose money trading CFDs at this site

You’ll then get an email from eToro that requires you to verify your email and submit additional personal data. This includes your financial status, trading background, and the number of trades you plan to make each day/week/month.

Step 2: Verify Your Identity

Like most regulated trading applications out there, you’ll be asked to verify your identity before you can start placing orders in the market. As such, eToro asks you to upload a copy of your passport or driver’s license as well as a recently issued bank account statement or utility bill.

Step 3: Make a Deposit

Once you have received an email from eToro that your account is approved, you can add funds to your online investment account. In the UK, eToro requires new investors to deposit at least £140. Fortunately, eToro does not charge any deposit fees and supports a range of payment methods that include:

  • Debit Card
  • Credit Card
  • E-Wallet (Paypal, Skrill, Neteller)
  • Bank Transfer

To make a deposit, you simply need to click on the ‘Deposit’ button on the trading dashboard, select your preferred payment option and choose the amount you wish to deposit.

Step 4: Search and Invest in a Lithium ETF

Now that you have funds in your account, you can search for a lithium ETF and place a buying order. To do that, type in ‘Lithium’ or ‘Global’ in the search bar at the top of your screen.

eToro search etfs

67% of retail investors lose money trading CFDs at this site

From this point, you have two options – to click on the ‘Trade’ from the results that appear in the drop down list, or click on the instrument itself to be transferred to the ETFs page.

Regardless, you’ll be able to trade on the ‘Buy’ button on the ETF’s page that opens an order form.

eToro place order lithium

In the order form, you need to choose the type of order (market or limit), set the amount you wish to invest in Global X Lithium & Battery Tech ETF, and then click on the ‘Place Order’ button to send the order to the market (and Set Order when placing the order when the US market is closed).

Best Lithium ETF UK – Conclusion

To summarise, the best lithium ETF UK could be a great strategy to diversify your portfolio and get an opportunity to make a long-term return on your money. Among all the lithium investment options, ETFs are the best way to get exposure to a variety of lithium mining and lithium producers in one single asset.

From this guide on the best lithium ETFs UK, you now have the knowledge needed to decide what are the best lithium ETFs to buy right now and what is the best online trading platform in which you can invest in these assets.

If you’re looking to invest in one of the lithium ETFs on our list, eToro allows you to buy stocks and ETFs without paying any commissions and account management fees.

eToro – Invest in the Best Lithium ETFs UK with 0% Commission

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

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About Tom Chen PRO INVESTOR

Tom is an experienced financial analyst and a former grains derivatives day trader specializing in futures, commodities, forex, and cryptocurrency. He has over 10 years of experience in the Finance industry spanning across a day trader position at Futures First, and a web content editor and writer at FXEmpire. Tom is an expert in the areas of day trading and technical analysis as it applies to futures, cryptocurrencies, forex, and stocks. Tom’s primary interests include economics, trading, social-economic systems, technology, and politics. He has a B.A. in Economics and Management, a Journalism Feature Writing certificate from the London School of Journalism. Tom has written for various websites, such as FX Empire, The Motley Fool, InsideBitcoins, Yahoo Finance, and Learnbonds.

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