Olemedia
Hurt by economic uncertainty in China and a change in investor tastes away from the EV industry, the Lithium & Battery Tech ETF (NYSEARCA:LIT) slumped to a new near eight-month trading low on Monday afternoon. The exchange traded fund dropped to a level not seen since late April.
Global X’s LIT, with its $3.62B assets under management, dipped on Monday by 1.7%, taking the fund down to an intraday low of $62.63 a share, a position not seen since April 26. Bigger picture, the fund is -27.1% year-to-date.
The ETF which is constructed with a 0.75% expense ratio and 48 holdings. The fund’s stated aim is to invest in businesses throughout the complete lithium lifecycle, which includes mining, refinement and battery production.
The fund’s struggles have, in part, stemmed from its 34% net exposure to China, with that country undergoing recent challenges with COVID lockdowns and a reopening economy. About 25% of the ETF’s holdings are based in the United States. Some of those names include Albemarle (NYSE:ALB), Rivian Automotive (NASDAQ:RIVN), and Tesla (TSLA).
Elsewhere in the ETF market, ProShares is looking to capture investor interest in the battery market with its ProShares S&P Global Core Battery Metals ETF (NYSEARCA:ION).
Image and article originally from seekingalpha.com. Read the original article here.