5 ms·
If I wanted to invest in lithium, what companies or ETFs should I look at?
by pscsbs 9y ago
If I wanted to invest in lithium, what companies or ETFs should I look at?
- joshuamcginnis 9y agoGlobal X Lithium ETF (NYSE:LIT) https://www.globalxfunds.com/funds/lit/ https://www.globalxfunds.com/funds/lit/
- kogepathic 9y agoAt 0.76% management fee and an average return over 5 years of 8.09%, you're better off just investing in an index ETF. Their own comparison shows the index matching or beating the Lithium ETF in every metric. * LIT since inception: 38.48% * Index over same period: 45.82% You also have zero diversification with a resource ETF. If you really want to buy into only Lithium then I won't try to talk you out of it. But maybe consider Vanguard Growth ETF (VUG), the average return over 5 years is 14.4%, or nearly double that of LIT. [1] [1] https://institutional.vanguard.com/iippdf/pdfs/FS967R.pdf https://institutional.vanguard.com/iippdf/pdfs/FS967R.pdf
- jwblackwell 9y agoYou’re assuming OP wants to invest all of his money in Lithuum. And that past performance remains the same
- saguro 9y agoHe's also assuming that ETF is going to perform the same way in the future, when the whole point of TFA is that lithium demand is about to surge.
- kogepathic 9y agoThere was another quote in TFA about the potential to over build mining capacity and flood the market. But sure, buy this and hope it "surges" more than the general market. Given that billions of devices already have lithium cells in them and the historical performance of the Lithium ETF is still quite disappointing compared to the broader market, I wouldn't hold my breath that this time is any different.
- andy_ppp 9y agoSeems like well researched advice to me, but I literally know nothing about investment. Still, seems like you were being helpful so I upvoted you.
- deleted 9y ago[deleted]
- totalZero 9y agoThe article mentions Tianqi Lithium, SQM, Albemarle, and FMC. The latter 3 trade on NYSE. https://www.google.com/finance?q=NYSE:SQM https://www.google.com/finance?q=NYSE:SQM https://www.google.com/finance?q=NYSE:ALB https://www.google.com/finance?q=NYSE:ALB https://www.google.com/finance?q=NYSE:FMC https://www.google.com/finance?q=NYSE:FMC These are the top three holdings in Global X Lithium & Battery Tech ETF (https://www.globalxfunds.com/funds/lit https://www.globalxfunds.com/funds/lit), together composing about 43% of that fund's holdings.
- NicoJuicy 9y agoI think ALB is on a low now after a drop ( after multiple gains), since the Sodium news. Also, they are one of the better ones concerning revenue.
- comicjk 9y agoIf you wanted to invest in lithium, someone should warn you that individuals without special knowledge should not get involved with picking commodities. You'll be buying a lot of volatility with no increase in expected return.
- valuearb 9y agoAny equity index fund has some exposure to lithium, and will likely give you higher returns with no work on your part.
- newguynewguy 9y agoGXY if you're in AUS. GALXF (otc adr) if you're in US. Last I checked, it's the only pure-play lithium miner that is producing and delivering.