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Lithium ETF (LIT) Hits New 52-Week High

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For investors seeking momentum, Global X Lithium & Battery Tech ETF ((LIT - Free Report) ) is probably on the radar. The fund just hit a 52-week high and soared 78.9% from its 52-week low of $31.44 per share.

Are more gains in store for this ETF? Let’s briefly examine the fund and its near-term outlook to gain a better understanding of where it might be headed:

LIT in Focus

The underlying Solactive Global Lithium Index tracks the performance of the largest and most liquid listed companies that are active in the exploration and/or mining of Lithium or the production of Lithium batteries. LIT ETF charges 75 basis points (bps) in annual fees (see: all the Materials ETFs here).

What Led to the Upside?

Amid global decarbonization momentum, demand for lithium and other battery metals, which are essential raw materials used in electric vehicles, renewable energy systems, and storage components, has surged enormously in recent times.

This demand trend, which raises hopes of easing the global supply glut, is expected to have driven the upside in lithium & battery metal mining stocks, and thereby ETFs like LIT.

More Gains Ahead?

LIT might remain strong, given its positive weighted alpha of 47.86 (per barchart.com). The ETF still offers some potential for investors seeking to benefit from its surge.


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