Home / Sector / ETFs / Here's why the ETFs Battery Tech & Lithium ETF (ASX:ACDC) is having such a rocking month

Here's why the ETFs Battery Tech & Lithium ETF (ASX:ACDC) is having such a rocking month

This lithium and battery ETF has had a great month…

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Sebastian Bowen
Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record.
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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?

A green fully charged battery symbol surrounded by green charge lights representing the surging Vulcan share price today

Image source: Getty Images

ACDC ETF gets a power surge

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:

  1. BYD Co – weighting of 5.9%
  2. Pilbara Minerals Ltd (ASX: PLS) – weighting of 5.3%
  3. Tesla Inc (NASDAQ: TSLA) – weighting of 4.9%
  4. Solaredge Technologies Inc (NASDAQ: SEDG)– weighting of 4.7%
  5. 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.

Motley Fool contributor Sebastian Bowen owns shares of Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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