3. Global X Lithium & Battery Tech ETF (NYSE:LIT)
5-Year Performance as of August 4: 98.98%
The main objective of the Global X Lithium & Battery Tech ETF (NYSE:LIT) is to closely track the price and yield performance of the Solactive Global Lithium Index. The ETF focuses on investing in companies involved in the entire lithium cycle, starting from mining and refining the metal to battery production. Launched on July 22, 2010, Global X Lithium & Battery Tech ETF (NYSE:LIT) has 40 stocks in its portfolio. As of August 4, 2023, the net assets of the ETF amount to $3.18 billion, with an expense ratio of 0.75%. Global X Lithium & Battery Tech ETF (NYSE:LIT) is one of the best EV ETFs to monitor.
Albemarle Corporation (NYSE:ALB), a global company that specializes in the development, manufacturing, and marketing of engineered specialty chemicals, is the largest holding of Global X Lithium & Battery Tech ETF (NYSE:LIT). On August 2, Albemarle Corporation (NYSE:ALB) revised its earnings forecast for the full year 2023, expecting the EPS to range from $25.00 to $29.50 per share, which is an increase from the previous guidance of $20.75 to $25.75 per share. This new estimate also exceeds the market EPS estimate of $23.05 per share. Additionally, the company now expects FY 2023 revenue to fall between $10.4 billion to $11.5 billion, compared to the previous range of $9.8 billion to $11.5 billion. This is above the Street consensus estimate of $10.1 billion in revenue.
According to Insider Monkey’s first quarter database, 41 hedge funds were bullish on Albemarle Corporation (NYSE:ALB), compared to 46 funds in the prior quarter.
The London Company Large Cap Strategy made the following comment about Albemarle Corporation (NYSE:ALB) in its second quarter 2023 investor letter:
“Initiated: Albemarle Corporation (NYSE:ALB) – ALB is a global chemical company that develops, manufactures and markets highly-engineered specialty chemicals across a diverse range of end markets. ALB operates in three segments: Energy Storage (battery and technical grade lithium), Specialties (bromine and specialty lithium products), and Ketjen (formerly known as catalysts). Cost advantage in the Energy Storage and Specialties businesses along with high switching costs in the Ketjen division form the basis of the company’s moat. Energy Storage has become the core business as electric vehicle (EV) penetration has increased, driving growth in demand for lithium ion batteries. We expect this trend to continue, and ALB is well-positioned to capture value as the industry grows. We’re attracted to ALB’s leading industry position, cost advantages and solid margins. We initiated this position when sentiment on lithium was at a trough, which allowed us to establish a position in ALB at an attractive valuation.”
