Major indices finish lower amid GE earnings disappointment >>> READ MORE

3 Suppliers to Ride the Electric Vehicle Revolution

The rest of the auto sector has taken note of Tesla's success

      View All  

Global X Lithium ETF

GlobalX185The key component in fast-charging EV batteries is lithium. The element allows for a high charge with a long life compared with other elements, but also is reasonably cost effective.

So if you want to play the electric vehicle revolution without picking an automaker, just invest in the key fuel source with the Global X Lithium ETF (LIT).

This lithium fund invests in the largest and most liquid stocks that explore and mine lithium, or companies that directly produce lithium batteries. Right now, top holdings include FMC Corp. (FMC) and Rockwood Holdings (ROC), two diversified chemical companies each with large lithium exposure. Other investments include Chilean lithium miner Soquimich (SQM) and Korean electronics and industrial giant Samsung (SSNLF).

A lot of this fund is positioned currently towards electronics use of lithium, but that will surely change over time to also favor electric vehicles. So if you’re looking for a diversified play that still has a focus on EV sales, the LIT ETF is a great lower-risk option.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC