Global X Funds launches first lithium exchange-traded fund

23 July 2010

US-based Global X Funds has launched the world’s first lithium exchange-traded fund (ETF), which it said is the first to offer investors targeted access to a resource industry critical for the development of renewable energy.

‘The Global X Lithium exchange-traded fund is an efficient way to invest in what we refer to as a green commodity because of its direct correlation to the renewable energy market such as electric cars and energy storage,’ said Bruno del Ama, CEO of Global X Funds.

The fund will track the Solactive Global Lithium Index, which is designed to reflect performance of the largest and most liquid lithium battery producing and mining and refining companies in the world.

‘Lithium is the lightest metal,’ said Jose Gonzalez, COO of Global X Funds.

‘When processed it has the capacity to store electric energy more efficiently than any other material. Efficient electric energy storage is necessary for all green energy products and the computer systems that control them – like electric cars, solar, wind and water power.’

The three largest components of the fund are lithium producers SQM from Chile as well as FMC and Rockwood Holdings from the US.

Global X Funds said the basket of lithium-related equities will give investors access to the complete lithium value chain, from mining and refining through lithium battery production.

Just over half of the index includes lithium battery manufacturers, while 49 per cent consists of lithium mining and refining companies.

Global X Funds is a family of exchange traded funds, including a suite of Brazil and China sector-specific exchange-traded funds and Silver and Copper Miners exchange-traded funds, among others.

Recent filings with the Securities Exchange Commission (SEC) indicate  the company will also bring uranium and aluminum exchange-traded funds to market.

Copyright © 2010 NewNet

Tags: electric vehicle, energy efficiency

This story was published on Friday, July 23rd, 2010 at 10:23 am and is filed under North America, energy efficiency, funds. You can follow any responses to article entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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