As the lithium fund holds a variety of companies that are exposed to multiple revenue streams it might be of interest for investors to note that on a weighted average basis, the implied exposure to lithium from the top 10 holdings is equivalent to only approximately 30 percent of the fund's assets, based on the reported segmented revenue from the latest annual company filings.
By Dave Brown - Exclusive to LithiumInvestingNews.com In the U.S. alone, there were 914 listed Exchange Traded Funds (ETFs) at the end of June, which represents an increase of 21 percent from a year ago. According to the National Stock Exchange and since 2007, ETFs have accounted for $480 billion in net cash inflows, bringing total assets to $780 billion. Investors that wish to have exposure to gold or silver can select from a diverse multitude of products that may satisfy their specific objectives, including everything from commingled precious metal mining equities of varying market capitalizations to physical bullion. A casual overview at the fund universe provides an overwhelming portfolio of investment vehicles to choose from. For investors that prefer to hold the physical metals than less direct exposure through mining companies, there are still numerous options traded on the major stock exchanges including Zurich, Mumbai, London, Paris and New York. In fact, as of October 2009, gold ETFs alone, accounted for 1,750 tonnes of gold in total for retail and institutional investors. There are also closed-end funds (CEFs) and exchange-traded notes (ETNs) that benchmark the dynamic price of the yellow metal. As of last Friday, the first “lithium ETF” was launched by Global X, which has recently released funds targeting silver miners and copper producers. The Global X Lithium ETF (NYSE: LIT) tracks the Solactive Global Lithium Index, a benchmark made up of large, liquid companies in the lithium space. As of the fund's launch last Friday, the underlying assets consisted of about 51 percent mining companies and about 49 percent lithium-ion battery makers. This is a key point for investors, because LIT does not provide direct pure play exposure to pick-and-shovel explorers, developers, and producers. However it will also enable access to some of the major battery manufactures.