5 Best Lithium ETFs

In this article, we discuss 5 best lithium ETFs. If you want to read our detailed discussion on the lithium industry, head over to 10 Best Lithium ETFs. 

5. iShares Global Clean Energy ETF (NASDAQ:ICLN)

5-Year Performance as of September 4: 89.28%

The iShares Global Clean Energy ETF (NASDAQ:ICLN), one of the best performing lithium ETFs, strives to replicate the performance of S&P Global Clean Energy Index, which includes worldwide stocks within the clean energy sector. One of the fund’s primary objectives is to align with an index that employs specific criteria to filter out certain types of business involvements. These exclusions cover areas like controversial weapons, small arms, military contracts, tobacco, thermal coal, oil sands, shale energy, and arctic oil and gas exploration. The ETF was launched on June 24, 2008. As of September 1, 2023, iShares Global Clean Energy ETF (NASDAQ:ICLN)’s net assets total around $3.48 billion, with an expense ratio of 0.41%. Its portfolio includes 100 stocks.

First Solar, Inc. (NASDAQ:FSLR) is the largest holding of the iShares Global Clean Energy ETF (NASDAQ:ICLN). First Solar, Inc. (NASDAQ:FSLR) offers solar energy solutions using photovoltaic (PV) technology worldwide. The company’s expertise lies in designing, making, and selling solar modules crafted from cadmium telluride, which transform sunlight into usable electricity. They cater to a range of clients, including system developers, utilities, independent power producers, commercial, and industrial entities, as well as other system owners.

According to Insider Monkey’s second quarter database, 51 hedge funds were bullish on First Solar, Inc. (NASDAQ:FSLR), up from 39 funds in the preceding quarter. Robert Pohly’s Samlyn Capital is a significant position holder in the company, with 1.26 million shares valued at $239.6 million.

Here is what White Brook Capital has to say about First Solar, Inc. (NASDAQ:FSLR) in its Q1 2021 investor letter:

“First Solar (FSLR) and Itron (ITRI), both of which I’ve written about in past In Focus sections were long-term positions that were sold as their prices exceeded price targets. Both are solid companies that remain on my watchlist, but the opportunity cost of not investing in other potential investments exceeded their potential mid-term returns.”

4. Global X Lithium & Battery Tech ETF (NYSE:LIT)

5-Year Performance as of September 4: 91.74%

The objective of the Global X Lithium & Battery Tech ETF (NYSE:LIT) is to achieve investment outcomes that generally match the price and yield performance of the Solactive Global Lithium Index, excluding fees and costs. Global X Lithium & Battery Tech ETF (NYSE:LIT), known as one of the best lithium ETFs, launched on July 22, 2010. It invests across the complete lithium supply chain, encompassing activities from mining and metal refining to battery manufacturing. As of September 1, 2023, the fund holds net assets worth $2.85 billion and features an expense ratio of 0.75%. Its portfolio comprises 40 stocks. 

Albemarle Corporation (NYSE:ALB) is the largest holding of Global X Lithium & Battery Tech ETF (NYSE:LIT). Albemarle Corporation (NYSE:ALB) creates, produces, and sells specialized chemicals used in different industries around the world. The company is divided into three segments – Lithium, Bromine, and Catalysts. Its services are utilized in sectors like energy storage, refining petroleum, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection.

According to Insider Monkey’s second quarter database, 41 hedge funds were bullish on Albemarle Corporation (NYSE:ALB), same as the last quarter. Philippe Laffont’s Coatue Management held a significant position in the company, with 691,853 shares worth $154.35 million.

Aristotle Small/Mid Cap Equity Composite made the following comment about Albemarle Corporation (NYSE:ALB) in its second quarter 2023 investor letter:

“Albemarle Corporation (NYSE:ALB), the world’s largest lithium producer was sold from the portfolio amidst the announcement from Chile’s president that he would nationalize the country’s lithium industry and in time transfer control from SQM and Albemarle to a separate state-owned company effectively changing long-term risk/reward ratio of the stock, in our view.”

3. Global X Battery Tech & Lithium ETF (ASX:ACDC)

5-Year Performance as of September 4: 97.50%

The Global X Battery Tech & Lithium ETF (ASX:ACDC) is one of the best lithium ETFs. It aims to reflect the performance of the Solactive Battery Value-Chain Index’s price and yield. This ETF provides an opportunity for investors to tap into global companies involved in developing electro-chemical storage technology, as well as mining firms producing battery-grade lithium. Launched on August 30, 2018, the fund’s assets under management totaled A$615.4 million as of September 1, 2023. Its management cost stands at 0.69% and the ETF’s portfolio comprises 32 stocks.

EnerSys (NYSE:ENS) is one of the top holdings of the Global X Battery Tech & Lithium ETF (ASX:ACDC). EnerSys (NYSE:ENS) offers diverse stored energy solutions for industrial uses around the globe. The company functions through three segments – Energy Systems, Motive Power, and Specialty. Its products are distributed through a system of distributors, independent representatives, and their own sales teams.

According to Insider Monkey’s second quarter database, 29 hedge funds were bullish on EnerSys (NYSE:ENS), up from 23 in the previous quarter. Herbert Frazier’s Hill City Capital is the largest stakeholder of the company, with 607,500 shares worth $65.9 million.

Vulcan Value Partners made the following comment about EnerSys (NYSE:ENS) in its second quarter 2023 investor letter:

“EnerSys (NYSE:ENS) is a global leader in stored energy solutions for industrial applications. Pandemic related supply chain issues slowed revenue growth, depressed margins, and decreased free cash flow. Management has done a good job recapturing higher input costs. At their recent investment day, they confirmed that their growth drivers remain in place, though they may develop slower than the company originally forecast.”

2. L&G Battery Value-Chain UCITS ETF (LON:BATG)

5-Year Performance as of September 4: 122.57%

L&G Battery Value-Chain UCITS ETF (LON:BATG) seeks to mirror the performance of the Solactive Battery Value-Chain Index through a full replication strategy. This index is designed to track companies involved in supplying specific electrochemical energy storage technologies and mining firms engaged in producing metals essential for battery manufacturing. The ETF was introduced on January 23, 2018, and as of September 1, 2023, it has net assets totaling $933.9 million, paired with an expense ratio of 0.49%. L&G Battery Value-Chain UCITS ETF (LON:BATG) is one of the best lithium ETFs to buy. 

BYD Company Limited (OTC:BYDDY) is a prominent holding of L&G Battery Value-Chain UCITS ETF (LON:BATG). It is involved in researching, developing, manufacturing, and selling automobiles within the People’s Republic of China and globally. The firm is divided into three main segments – The Secondary Rechargeable Batteries and Photovoltaic division, which produces and markets lithium-ion and nickel batteries, photovoltaic products, and iron batteries primarily for mobile phones, power tools, photovoltaic and energy storage products, and electric vehicles. Additionally, there is the Mobile Phone Components, Assembly, and Other Products segment, as well as the Automobiles, Automobile-Related Products, and Other Products segment.

1. First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN)

5-Year Performance as of September 4: 140.74%

The First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN) is an ETF with the goal of achieving investment outcomes that generally match the price and yield of the NASDAQ Clean Edge Green Energy Index, excluding the fund’s own costs. This fund was launched on February 8, 2007. As of September 1, 2023, the fund’s total net assets stand at $1.4 billion, and it holds a portfolio comprising 62 stocks. First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN) features an expense ratio of 0.58%. It is the top performing lithium ETF on our list, based on its 5-year performance as of September 4.

Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the largest holdings of the First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN). Rivian Automotive, Inc. (NASDAQ:RIVN) is in the business of creating, designing, making, and marketing electric vehicles and related accessories. Their lineup includes five-passenger pickup trucks and seven-passenger sports utility vehicles. The company directly sells these products to customers in both consumer and commercial markets.

According to Insider Monkey’s second quarter database, 37 hedge funds were bullish on Rivian Automotive, Inc. (NASDAQ:RIVN). This number increased from the last quarter when 31 funds had invested in the stock. Daniel Sundheim’s D1 Capital Partners is the largest position holder in the company, with 13.9 million shares valued at $231.7 million.

Baron Fifth Avenue Growth Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its second quarter 2023 investor letter:

“During the second quarter, we also added to our position in EV manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN). After a complex period since the company’s IPO, in which Rivian tried to ramp multiple vehicles simultaneously while struggling to overcome unprecedented supply-chain bottlenecks, the company seems to have turned the corner. Production is now starting to scale up, which should help the company improve its plant utilization and subsequently help gross margins. The company is making notable progress in cost improvements by renegotiating with its suppliers, utilizing its larger scale to get better pricing, as well as, incorporating various technological advancements that would improve its cost structure while also improving the vehicles’ performance (for example it’s Enduro drive unit which is progressing ahead of plan).”

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