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Hi Paul
I am wanting to get some exposure to the battery storage / electric vehicle market. I have been following a few stocks in this space and am thinking that an ETF might be best way to go. I have found one ETF called ACDC which aims to track the performance of the Solactive Battery Value-Chain Index which, as you probably know, consists of stocks of worldwide companies that are providers of certain electro-chemical energy storage technology (i.e., battery technology) and mining companies that produce metals that are primarily used for manufacturing batteries. What are your thoughts on this ETF or any other that you may be aware of.
A: Thanks for the question.
ACDC, the exchange traded fund from ETF Securities, is currently the only practical way to gain diversified exposure to this sector. As you point out, it tracks an index from Solactive that comprises internationally listed companies that are providers of electro-chemical storage technology and mining companies that produce metals that are primarily used for manufacturing of lithium batteries. Currently, the index comprises 31 stocks, and is equally weighted (when rebalanced).
Looking at the current holdings, the top 6 are Pilbara Minerals, Galaxy Resources, AMG Advanced Metallurgical, Renault, GS Yuasa and Tesla.
To invest in this, you need to have faith that the index is a good representation of the sector. I can’t readily suggest an alternative.
A couple of points about the ETF: it is international and unhedged. The management fee is 0.69% pa
Regards
