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5 Popular Lithium ETFs Among UK Investors

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If you are looking to invest in lithium, an ETF is one of the ways to do that. There are several lithium ETFs available in the global financial market, which means choosing the right one can be a challenge.

In this guide, we’ll reveal some popular lithium ETFs in the market, suggest UK brokers that are fully regulated and offer low fees, and show you the process of how to invest in lithium ETFs in the UK.

Key Points on Lithium ETFs in UK

  • Lithium ETFs track a benchmark index of 30+ companies that are involved with lithium mining and producing batteries.
  • Investors are turning to Lithium ETFs for their sustainability and widespread adoption in the electrification of the world as we know it.
  • Lithium ETFs are a great way to diversify your portfolio and gain exposure to the sustainable energy sector.

5 Popular Lithium ETFs in the UK 2022 List

Below, we review each one of the most popular lithium ETFs in the market, however, if you want to get into the game, here’s an overview of lithium ETFs for UK investors to consider researching based on trading volumes.

  1. The Global X Lithium & Battery Tech ETF (NASDAQ: LIT) 
  2. ETFs Battery Tech & Lithium ETF (ASX: ACDC.AX)
  3. Amplify Lithium & Battery Technology ETF (NYSE: BATT)
  4. First Trust Nasdaq Clean Edge Smart Green Energy ETF (NASDAQ: QCLN) 
  5. WisdomTree Battery Solutions UCITS ETF USD Acc (LSE: CHRG.L) 

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 ETFs, including past price performance, future outlook, and more.

1. The Global X Lithium & Battery Tech ETF 

Undoubtedly, the Global X Lithium & Battery Tech ETF is one 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%.

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.

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2. ETFs Battery Tech & Lithium ETF

Australia is one of the producers 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 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 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. 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%.

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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

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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Fundamentals of Lithium ETFs 

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, one 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 one 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.

Lithium ETF UK Investment Platforms 2022

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 

eToro commodity brokereToro is an FCA-regulated broker and is known as a social trading platform with more than 20 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.

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. 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

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.

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.

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2. Fineco Bank

Fineco logoWhile eToro is widely known for its social trading platform and cost-effective pricing structure, Fineco Bank is a possible 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.

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Lithium ETF UK – Conclusion

To summarise, one lithium ETF UK could be a way 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 one way to get exposure to a variety of lithium mining and lithium producers in one single asset.

From this guide on lithium ETFs UK, you can now conduct your own market research.

Frequently Asked Questions on Lithium ETFs in the UK

Are lithium ETFs a risky investment?

What is a leveraged lithium ETF?

How can I short-sell lithium?

What type of returns can I get by investing in an lithium ETF?

Are lithium ETFs suitable for long-term investments?

Tom Chen author check sign 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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