Amplify ETFs has launched the Amplify Advanced Battery Metals and Materials ETF (BATT US) on NYSE Arca. The actively managed offering provides exposure to publicly-traded stocks of firms involved in the mining, exploration, production, processing, or recycling of advanced battery metals and materials.
Christian Magoon, CEO of Amplify ETFs.
BATT constituents must derive 50% or more of their revenue, or be in the top five and have at least 10% of global market share, of any advanced battery material.
Christian Magoon, CEO of Amplify ETFs, commented, “The recent boom in battery-powered electric vehicles, smart devices and large-scale energy storage solutions may be the tip of the iceberg for this investment opportunity. As the demand and science behind efficient battery solutions matures, BATT’s actively managed approach across multiple metals and materials will seek to adapt the fund’s holdings in order to optimize investment exposure to this dynamic space.”
Amplify believes the global battery market will experience growing demand due to the growth of robotics, electric vehicles, artificial intelligence, smart devices and clean energy technology. In addition, the constrained and geographically concentrated supply of battery metals and materials suggests positive movement in prices for these essential building blocks.
Magoon added, “We see a significant opportunity to capitalize on segments of an industry where we are in the early stages of growth. Batteries aren’t just about lithium anymore; investors may need to own a broader basket of metals and materials to best capture the future growth potential associated with the battery market.”
BATT is a globally diversified fund. By region, it currently holds roughly one-third (32.6%) of its weight in North Amercian stocks, followed by Australia (24.9%), Europe (18.1%) and Asia (16.7%).
The fund’s exposure to stocks in different metals industries are fairly evenly balanced between stocks in the businesses of lithium (28.4%), cobalt (25.3%), manganese (21.5%) and nickel (21.1%). Its largest holding is Katanga mining (5.7%), followed by Lundin mining (3.5%) and Albemarle corp (3.4%).
BATT has an expense ratio of 0.72% and trades in US dollars.