When it comes to getting commodities exposure, lithium and copper are a couple of solid ETF alternatives to consider. Of course, the bigger question is which one do you go with given the current market landscape.
On one hand, there’s the Global X Lithium & Battery Tech ETF (LIT). LIT seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Lithium Index, which is designed to measure broad-based equity market performance of global companies involved in the lithium industry.
LIT gives investors:
- Efficient Access: LIT offers efficient access to a broad basket of companies involved in lithium mining, lithium refining, and battery production.
- Thematic Exposure: The fund is a thematic play on lithium and battery technology.
On the other hand, there’s the Global X Copper Miners ETF (COPX). This fund seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Copper Miners Total Return Index, which is designed to measure broad-based equity market performance of global companies involved in the copper mining industry.
COPX gives investors:
- Targeted Exposure: COPX is a targeted play on copper mining.
- ETF Efficiency: In a single trade, COPX delivers efficient access to a basket of companies involved in the mining of copper.
Both funds are showing nice recoveries following the pandemic sell-offs back in March. Lithium has been a stellar performer with the rise in the electric vehicles market, but copper is not to be denied.
Take the country of Chile — per an OilPrice.com article, “Chile’s state-owned Codelco, the world’s no.1 copper producer, will go ahead with plans to explore for lithium at the Maricunga salt flat, the country’s second-largest in terms of reserves, after receiving the approval from local environmental regulators. The exploration campaign, approved by the 10 members of the Environmental Assessment Commission of Atacama, where Maricunga is located, would begin in April 2021, Codelco said.”
“The copper giant plans to spend between six and 10 months on the field to determine concentrations of the battery metal on the 145 sq. km (90 square miles) area, estimate the size of the resource and identify necessary next steps” the article added.
“Depending on the results, specifically on the concentrations of lithium dissolved in the brines of said mining properties, Codelco will define whether it is environmentally and economically viable to move on to the next stages of the project,” the company said in a statement.
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