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6 New Stocks Join The ACDC ETF

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The ETFS Battery Tech & Lithium ETF (ACDC) was recently rebalanced on Friday 20th May. As part of this rebalance, new index rules were applied to improve liquidity and ESG filters:

  • The equally weighted fund has increased its reconstitution frequency from once per year in November, to now twice per year in May and November.

  • Any company included in the ESG exclusions list will be removed from the Index universe.

  • A liquidity cap has been introduced, replacing the tiered liquidity system. This is to limit potential market impact when ETFs tracking the index rebalance and manage inflows/outflows.

  • ETFs tracking the index cannot collectively own more than 7.5% of a company to prevent governance issues.

During the May rebalancing, the fund removed 9 stocks and added 6 stocks, reducing the total number of holdings to 30. Below is a summary of 6 stocks that has been added to the Energy storage and production megatrend ETF, to ensure you're up to date.

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LG Energy Solutions

(KRX:373220)

The company spun-off from parent company LG Chem, replacing LG Chem in the fund. LG Energy solution is the second most valuable company on Seoul’s benchmark Kopsi index with a market capitalisation of approximately $79.94B. The company that manufacturers batteries for drones and ships, announced at the beginning of the year plans to build a $2.6 billion battery factory in the US with General Motors. LG Energy Solution supplies car making giants Tesla, General Motors and Volkswagen and accounts for more than 20% of the global EV battery market.

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Allkem

(ASX:AKE)

Operating as a Lithium Chemicals company and borates producer with a global portfolio of diverse & lithium chemicals. The company’s strategy is to expand production 3-fold by 2026 and maintain 10% of global lithium production over the next decade. The Olaroz Lithium Factory, located in Northern Argentina, has been producing high-grade lithium carbonate since 2014. Sitting 3,900 meters above sea level, this lithium factory has a very low environmental footprint, utilizing solar energy, minimal waste and no impact on fresh water. Battery grade lithium carbonate, which is produced in the factory, is sold to directly to cathode and electrolyte manufacturers to produce lithium-ion batteries used in Electric Vehicles.

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Volkswagen

(ETR:VOW3)

Volkswagen engages in the production and sale of passenger cars and light commercial vehicles. The firm will launch the ID 4 sedan, as a slick technological showpiece aimed at stealing sales from the most popular electric cars on the market, and is set to unveil a compact urban EV priced at around the $30,000 mark. Tesla is currently in the lead regarding Electric Vehicle (EV) sales, however the Volkswagen CEO has claimed that the company will outsell Tesla by 2025. The company has placed further emphasis on EVs with 99,064 delivered to customers by the end of March, which is a 65% increase compared to the same period the previous year.

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Largo

(NASDAQ:LGO)

Engages in the exploration and production of vanadium at the Maracas Menchen Mine located in Brazil, focusing on the advancement of renewable energy storage solutions through its vanadium redox flow battery technology. The advantages of vanadium batteries versus Lithium batteries include it being non-flammable, non-explosion and have a longer lifespan. Largo’s VCHARGE batteries are cost effective due to a variety of innovations, enabling a safe and ESG-aligned long duration solution that is fully recyclable at the end of its 25+ year lifespan.

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Taiwan Cement Corporation

(TPE:1011)

The firm operates through the following segments: Cement, Chemical Engineering, Electricity, and has invested more than NT$10 billion dollars in environment-friendly equipment. Its subsidiary, E-Moli, is Taiwan’s largest lithium battery manufacturer and main supplier of batteries for major European and American high-end home appliance brands. The board of directors recently passed the resolution to invest up to NT$10 billion (~US$350 million) to set up Taiwan's first super battery factory in the Southern City of Kaohsiung, with the focus of manufacturing high-end, high-capacity, and high-charge-discharge nickel ternary batteries.

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