New York-based ETF issuer Global X Funds has unveiled an ETF providing access to lithium, a resource which the firm says is integral for renewable energy.
The new Global X Lithium ETF, listed on NYSE Arca, tracks the Solactive Global Lithium index.
This underlying benchmark is designed to mirror the performance of the largest, most liquid lithium battery producing, mining and refining companies in the world.
The three largest companies constituting the ETF are lithium producers SQM from Chile, and FMC Corporation and Rockwood Holdings from the US, as of July 13, 2010.
Global X Funds CEO Bruno del Ama says: "The Global X Lithium ETF is an efficient way to invest in what we refer to as a "green" commodity because of its direct correlation to the renewable energy market such as electric cars and energy storage."
The firm's COO Jose Gonzales says lithium is the lightest metal and has the capacity to store electric energy more efficiently than any other material.
He adds: "Efficient electric energy storage is necessary for all green energy products and the computer systems that control them - like electric cars, solar, wind and water power."
The fund of lithium related equities taps into the complete lithium value chain, from mining and refining to lithium battery production. Around 51% of the index includes lithium battery manufacturers and 49% lithium mining and refining companies, as of July 13, 2010.
What made financial headlines over the weekend?
Developed by industry-wide group
Joined in 2002
'Educate clients' children'
Raised £15m earlier this week