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The S&P/ASX 200 Index (ASX: XJO) has been enduring a rather disappointing four weeks or so of performance. Over the past month, the ASX 200 is down by roughly 1.7%, including the nasty 1.2% fall we’ve seen so far today. One ASX exchange-traded fund (ETF) is certainly putting the ASX 200 to shame over this period. That would be the ETFS Battery Tech & Lithium ETF (ASX: ACDC).
While the ASX 200 has gone backwards over the past month, the ACDC ETF has gone from a unit price of $93.91 to $96.95 that it is commanding currently. That’s a very pleasing gain of 4%, despite the 1.25% it has lost today thus far.
So how has a new ETF like ACDC pulled this off?
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Well, let’s dig a little deeper into what kind of investments ACDC actually holds. An ETF is only worth the sum of its parts, after all.
So according to the provider ETFS, ACDC is an ETF dedicated to companies in the battery technology and lithium mining spaces. It is designed to track “the performance of companies that are providers of electrochemical storage technology and mining companies that produce metals that are primarily used for the manufacturing of battery-grade lithium batteries”.
The top part of the Battery Tech & Lithium ETF portfolio is currently (as of 31 October) positioned as follows:
- BYD Co – weighting of 5.9%
- Pilbara Minerals Ltd (ASX: PLS) – weighting of 5.3%
- Tesla Inc (NASDAQ: TSLA) – weighting of 4.9%
- Solaredge Technologies Inc (NASDAQ: SEDG)– weighting of 4.7%
- Livent Corp (NYSE: LTHM)– weighting of 4.6%
Over the past month, BYD shares are up 1.86%.
Our own Pilbara Minerals is up a pleasing 15.7%.
Tesla is up 9.6% over the past month.
SolarEdge shares have risen 11%
And Livent Corp stock is up 19.1%.
Since these 5 companies comprise 25.4% of this ACDC ETF’s portfolio, it’s perhaps no surprise that ACDC has also had a successful month.
The ETFS Battery Tech & Lithium ETF charges a management fee of 0.69% per annum. Since its inception in August 2018, it has returned an average of 25.6% per annum.