ETF Securities Australia has launched the ETFS Battery Tech & Lithium ETF (ACDC AU) on the Australian Stock Exchange. The fund provides thematic exposure to companies globally that are closely related to battery technology and lithium production.
Kris Walesby, CEO of ETF Securities Australia.
The fund tracks the Solactive Battery Value-Chain Index, which consists of a mix of companies that are either providers of certain electrochemical energy storage technology (i.e. battery technology) or mining companies that produce metals primarily used for manufacturing batteries.
The universe of companies eligible for inclusion in the index is based on research from Metal Bulletin Group, which provides data on companies’ lithium production within the mining industry, and the DOE Global Energy Storage Database, which collects and aggregates data on energy-storage projects.
To be eligible for inclusion, a candidate company must also have a market capitalization of at least $200 million.
The index currently has 28 constituents which are equally weighted. Stocks from Japan make up the largest country exposure with a weight of 42.8%, followed by the US (18.6%), South Korea (11.8%) and Germany (10.3%).
According to Solactive, the index offers a unique ESG-type strategy due to its focus on companies developing efficient and large energy storage technologies. It argues that such technologies are necessary to address the unpredictability of most renewable energy resources and thus help combat climate change.
Timo Pfeiffer, Head of Research at Solactive, commented: “Lithium and battery technology is one of the most crucial technologies of the 21st century. The ETFS Battery Tech & Lithium ETF is a great opportunity for investors to gain exposure to this thriving industry.”
Kris Walesby, CEO of ETF Securities Australia, added, “Energy storage is undergoing a massive transformation in Australia and the rest of the world, with lithium considered to be one of the lightest and most efficient technologies. Using ACDC investors can get exposure to battery technology and lithium providers in one single trade.”
ACDC comes with an expense ratio of 0.82%.
The fund is the latest member of the issuer’s ‘Future Present’ range of ETFs that includes ETFS ROBO Global Robotics and Automation ETF (ROBO), which gives investors access to global companies focusing on robotics, automation and enabling technologies. This fund now has $125m under management after less than 12 months of trading.