5-Star ETFs Poised to Pop: Global X Lithium ETF
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Global X Lithium ETF (NYS: LIT) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Global X Lithium and see what CAPS investors are saying about the ETF right now.
Global X Lithiumfacts
Inception | July 2010 |
Total Assets | $104.3 million |
Investment Approach | Seeks to provide investment results that correspond to the Solactive Global Lithium Index, which tracks companies active in the exploration and/or mining of lithium or the production of lithium batteries. |
Expense Ratio | 0.75% |
Dividend Yield | 1.8% |
Year-to-Date / 1-Year Return | (33.4%) / (22.8%) |
Top 10 Holdings With High CAPS Rating (4 or 5 Stars) and Portfolio Weight | Chemical & Mining Co. of Chile (NYS: SQM) (23%) FMC (NYS: FMC) (18.4%) Rockwood Holdings (NYS: ROC) (9.8%) |
Sources: Morningstar and Motley Fool CAPS.
On CAPS, all of the 106 members who have rated Global X Lithium believe the ETF will outperform the S&P 500 going forward. These bulls include cablet and ILLUMI.
Less than a year ago, cablet succinctly summed up the bull case: "Lithium may possibly become the new oil for the 21st century as more devices (and soon autos) rely on longer lasting batteries. This ETF is a great way to get in now to Lithium while keeping lower risk than owning one or two of the underlying stocks."
Global X Lithium even sports an annual turnover ratio of just 6%. That's lower than other specialty commodity ETFs like Market Vectors Agribusiness (NYS: MOO) (20%) and iShares S&P North American Natural Resources (NYS: IGE) (11%).
CAPS member ILLUMI elaborates on the bull case:
Used for energy storage for smart grid (read: small-scale renewable/green energy), electric cars, phones/portable devices, medical, etc. Everything will be expected to last many hrs. without main power in the next few decades, and Li-Ion batteries are the way to store that energy, barring a major breakthrough in a different technology.
What do you think about Global X Lithium, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Global X Lithium?Add it to your watchlist.
At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of Rockwood.Motley Fool newsletter serviceshave recommended buying shares of Chemical & Mining Co. of Chile. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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