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Global X Lithium & Battery Tech ETF LIT: The Dip Is A Buying Opportunity

Main Street Investor profile picture
Main Street Investor


  • The ETF diversifies across the lithium and battery industry by including the most prominent companies in the space.
  • More than 100 million electric cars are expected to drive on global roads, a major growth catalyst for the ETF.
  • Although valuations remain high, the ETF is well-diversified and thus reduces the risk for investors.
  • Considering that LIT ETF is down more than 20% from all-time highs, the dip may be a buying opportunity.

Electric Car Charging
Photo by 3alexd/E+ via Getty Images


Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) offers investors an opportunity to invest in the global lithium and battery market while diversifying individual risk. The ETF is a market-cap weighted

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Main Street Investor profile picture
My investing strategy is focused on finding the best opportunities from every sector: value or growth - there is value in everything.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in LIT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

All predictions and projections are solely median estimates by financial analysts and are due for uncertainty. All graphs, charts, etc., may not be up to date and only represent the latest available data. I do not guarantee the accuracy for any of my mentioned price targets, and thus, they should not be used as investment advice.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (15)

08 Apr. 2021
Thank you very much for your review and your thoughts
The Etf is too expensive.
Good data and COMMENTARY.
NIce work. I am sure you will have a great future in finance and business. Keep up the good work
Steelhead15 profile picture
Our government is moving us toward EVs at a pace that seems very committed. I rebel at being forced, but the intentions seem good. I don't think they will get the money for infrastructure from this tax hike. Big companies always find a way to dodge it. IMO the tax hike is priced into the market already.
frank the fork profile picture
Buy GXTG and your diversified w/ 10% of Lit; and total exp of 0.5%.
Gives you Potx, socl, lit, finx, gnom and more. Add qyld for Income.
bil1026 profile picture
Strongly prefer BATT -- no pure-play lithium, which is being way, way overproduced & supplied, and the expense ratio is much lower. BATT focus is less commodity-dependent, especially on lithium which is massively abundant and over-capacity for next two decades.
@bil1026 Agree, and an investment in disruptive battery tech, without all in positions.
Steelhead15 profile picture
@bil1026 I agree except it moves like a snail.
Diamond-Hands profile picture

You seem like a very smart guy: I've been reading a lot of your comments in your profile.

May I ask why you believe lithium is being "way, way overproduced and supplied"?

Lithium prices have gone up a lot in the last year. Also, most analyst projections that I have seen are predicting lithium supply shortages starting soon, maybe even this year.

I don't know who's right in this debate, but I'd love to hear more from you about your side of it. Any sources for what you think?

I realize lithium is a common element. However, finding a commercially viable concentration of lithium, and getting a lithium-producing operation going, seems to be very challenging technically, very expensive, and takes several years. The difficulty and expense and length of the process would seem to me to be a fairly wide moat. Not to mention the challenges of getting permits and responding to local environmental concerns.

Maybe at some point in the future--say in 10 years--we will have so many lithium operations in production, that lithium prices will crash. However, I feel that time is distant, in investment terms. But this is just my impression, based on my reading about this subject.

Thanks for any light you can shed on this subject.
Capitalism Is Freedom profile picture
Yep, own HAIL, BATT, LIT, and IDRV all as long term investments. Will buy more on subsequent dips...
I'd have to agree here. I picked up some more shares when it dipped down to the mid 50s.
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