Press Release: ETF Securities creates Battery Technology and Lithium ETF (ASX code: ACDC)
Sep 03, 2018
ACDC ETF captures the structural global shift in the use of energy and dramatic advances in battery technology
ACDC adds to the ‘Future Present’ ETF range that includes the outperforming TECH ETF which has gained 40% in a year as well as ROBO
SYDNEY, September 3 – ETF Securities today launched an exchange traded fund (ETF) that provides Australian investors with access to companies directly involved in the global energy revolution.
Listed today on the Australian Securities Exchanges with the code ACDC, the ETFS Battery Technology and Lithium ETF tracks the performance of battery technology stocks and four lithium producers.
“Energy storage is undergoing a massive transformation in Australia and the rest of the world, with lithium considered to be one of the lightest and most efficient technologies,” said Kris Walesby, Head of ETF Securities Australia, which is the nation’s only locally-owned and independent ETF provider.
“Battery technology has advanced dramatically and is causing a structural shift in our use of energy both in terms of storage as well as the drive towards cleaner and more efficient energy,” Mr Walesby said, noting the global market for advanced battery materials is expected to increase 50 percent to about US$33 billion in the next four years.
Lithium batteries are the mainstay of laptops, smart phones and tablets with their capacity to provide reliable power over a long period of time. Significantly, these batteries also hold the key to delivering electric cars with a longer driving range, with demand expected to surge as the motoring public buy more of these cars.
“With a fee of 0.69 per cent, the ACDC ETF provides investors with exposure to 28 stocks from five sectors that include lithium producers such as Australia’s Orocobre, battery producer Samsung SDI, electric vehicle pioneer and battery producer Tesla and industrial specialist Toshiba,” said Mr Walesby.
“Using technology to help store more energy in batteries is still in its infancy so companies included in the ACDC ETF and involved with this research must show they have been recommended by the US Department of Energy,’’ Mr Walesby said.
In addition to lithium, the ACDC ETF will include exposure to lead, nickel, sodium and zinc batteries and its basket of stocks will be reassessed as other battery technologies such as hydrogen emerge over the longer term.
The ACDC ETF is benchmarked against the Solactive Battery Value-Chain Index, created by German index provider Solactive, that has delivered an annual return of 15 per cent per annum over the past five years.
“While the humble battery hasn't changed that much in years, we're on the cusp of a power revolution. Some notable as well as some less known but highly focussed companies are working hard to make their mark early with many investors keen to get on board when they can,’’ Mr Walesby said.
The ACDC ETF is the latest member of the Future Present range of ETFs that includes the first exchange traded fund in Australia, ROBO, that gives investors access to global companies focusing on robotics, automation and enabling technologies. It now has $125 million under management after less than 12 months of trading while the TECH ETF, another in the Future Present range, allows Australian investors to buy into the growth potential of the world’s top technology stocks including Apple, Google and Microsoft, currently at $74m in FUM.
TECH has returned 40 per cent over the past year and focuses on undervalued, high-quality technology businesses that have the potential to maintain a sustainable competitive advantage over the long term.
‘’The idea behind the Future Present program is that it allows investors to get involved with these megatrends that will change the way we live and offer potentially high growth investment opportunities,’’ said Mr Walesby.
Founded by Australian philanthropist Graham Tuckwell, ETF Securities created the first commodity exchange traded product with a gold ETF and now has more than $1 billion funds under management in Australia.