Battery Tech & Lithium ETF (ACDC) – Global X ETFs

ACDC


Battery Tech & Lithium ETF

Reasons to Consider ACDC

High Growth Potential

Lithium battery technology is essential to the rise of electric vehicles (EVs), renewable energy storage, and mobile devices.

Advancing Clean Technologies

EVs produce zero direct emissions, meaning broader adoption could result in reduced greenhouse gas emissions and improved urban air quality.1

Unconstrained Approach

ACDC invests in companies throughout the lithium cycle, including mining, refinement and battery production, cutting across the traditional sector and geographic definitions.

1 US Office of Energy Efficiency & Renewable Energy, Jan 2020

Product Information As of 20 Feb 2024

Inception Date 30 Aug 2018
Management Costs (% p.a.) 0.69
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 20 Feb 2024

NAV/Unit (A$) 87.70170000
Currency (NAV) AUD
Shares Outstanding 6,380,477
AUM (A$) 559,578,584.60
NAV History File View

Product Summary

The Global X Battery Tech & Lithium ETF (ACDC) offers investors exposure to global companies developing electro-chemical storage technology and mining companies producing battery-grade lithium.

Product Objective

The Global X Battery Tech & Lithium ETF (ACDC) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Battery Value-Chain Index.

Trading Details

Ticker ACDC
Bloomberg Code ACDC AU Equity
ISIN AU00000022386
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited

Benchmark Information

Benchmark Solactive Battery Value-Chain Index
Provider Solactive AG
Ticker SOLBATT

Distributions As of 31 Jan 2024

12-Month Yield 4.18%
12-Month Franking Level 4.06%
Distribution Frequency Annually
Distribution History View

Performance Table As of 20 Feb 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 6.85% 6.91% -0.06% 0.04%
3 Months 0.67% 0.85% -0.18% 0.07%
1 Year -3.34% -2.60% -0.74% 0.17%
3 Year p.a. 3.15% 4.00% -0.85% 0.25%
5 Year p.a. 16.50% 17.51% -1.01% 0.37%
10 Year p.a. -- -- -- --
Since Inception p.a. 13.92% 14.83% -0.91% 0.40%

Top Holdings As of 21 Feb 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
5.76 HD HYUNDAI ELECT BD4HFR9 134,400.00 224,312 34,314,332
4.77 TDK CORP 6869302 7,796.00 339,000 26,863,710
4.66 SUMITOMO ELEC IN 6858708 2,148.50 1,193,700 26,069,039
4.63 ABB LTD-REG 7108899 40.15 373,092 25,913,611
4.09 MERCEDES-BENZ GR 5529027 66.78 207,963 22,884,109
3.99 VOLKSWAGEN-PREF 5497168 118.08 114,634 22,304,439
3.93 SOLAREDGE TECHNO BWC52Q6 84.42 170,957 21,971,820
3.91 WARTSILA OYJ ABP 4525189 14.60 908,724 21,854,336
3.88 HONDA MOTOR CO 6435145 1,748.00 1,226,800 21,797,649
3.88 BMW AG 5756029 101.82 129,544 21,734,613
3.72 RENAULT SA 4712798 36.48 346,656 20,837,954
3.70 PANASONIC HOLDIN 6572707 1,424.50 1,431,800 20,731,908
3.56 NGK INSULATORS 6619507 1,905.50 1,011,200 19,585,762
3.53 ENERSYS B020GQ5 90.86 142,952 19,774,102
3.49 LG ENERGY SOLUTI BNSP8W5 404,000.00 42,505 19,545,427
3.47 DELTA ELEC 6260734 292.50 1,371,875 19,392,602
3.39 MINERAL RESOURCE B17ZL56 59.41 325,134 19,316,211
3.34 PILBARA MINERALS B2368L5 3.56 5,293,514 18,844,910
3.32 NISSAN MOTOR CO 6642860 566.20 3,243,900 18,669,461
3.10 TESLA INC B616C79 193.76 58,760 17,333,238
3.03 SAMSUNG SDI CO 6771645 395,000.00 37,630 16,918,236
2.70 BYD COMPANY 6536651 182.20 417,465 14,807,685
2.63 ARCADIUM LITHIUM BM9HZ11 4.65 2,077,217 14,705,119
2.60 ARCADIUM LIT-CDI BS715X9 7.42 2,081,819 15,447,097
2.18 BOLLORE SE 4572709 6.28 1,181,179 12,222,974
1.95 GS YUASA CORP 6744250 2,712.50 402,400 11,094,869
1.53 SEBANG GLOBAL BA 6212564 82,100.00 92,804 8,672,287
1.26 AMG CRITICAL MAT B1Z95S1 19.32 220,921 7,033,081
1.11 IVANHOE ELECTRIC BPF0KH6 7.48 543,932 6,194,126
1.09 EOS ENERGY ENTER BN7KCQ3 0.96 4,154,417 6,075,562
0.88 CORE LITHIUM LTD B4XFS83 0.23 23,006,039 5,176,359
Holdings are subject to change.

Sector Breakdown As of 21 Feb 2024

Sector Weight (%)
Consumer Discretionary 38.6
Industrials 27.9
Materials 15.2
Information Technology 15.2
Communication Services 2.2
Other/Cash 0.9

Country Breakdown As of 21 Feb 2024

Country Weight (%)
Japan 25.8
South Korea 13.8
Germany 12.0
United States 7.7
Australia 7.6
France 5.9
Jersey 5.2
Switzerland 4.6
Israel 3.9
Finland 3.9
Taiwan 3.5
Other/Cash 6.1

Research

FAQs

  • Why invest in battery tech and lithium?

    Batteries are a growth area as they are essential for storing clean energy. As the world transitions away from fossil fuels and towards solar, wind and hydro power, the demand for batteries is forecast to increase.

    Batteries are also crucial for electric cars, which are expected to steadily displace internal combustion engine cars over the coming decades.

    Outside of clean energy, batteries are required for mobile devices such as phones and laptops, which are being purchased in ever-greater number.

    Lithium is the crucial element supporting batteries, as lithium-ion batteries are cheaper to produce, faster to recharge and longer lasting than alternatives.
  • Is ACDC a sustainable or environmental investment?

    Batteries are essential for supporting renewable energy and the transition away from fossil fuels. Recognising this, state and Commonwealth governments have introduced subsidies and programmes designed at boosting the uptake of batteries and electric cars.

    Examples include South Australia’s Hornsdale Power Reserve, Queensland’s battery manufacturing precinct, the Commonwealth government exempting electric vehicles from fringe benefits and import taxes.

    ACDC also includes an environmental, social and governance (ESG) screen aimed at severely restricting the ability of fossil fuel companies to be included in the index. The index prevents companies that make more than 25% of their revenue in oil or gas, or more than 30% of their revenue from thermal coal, being included in the index.
  • How is the ESG screen built and what are its limitations?

    The index provider, Frankfurt-based Solactive AG, uses ESG data sourced from Minerva Analytics, an ESG research and data company based in the UK. Minerva conducts proprietary research on companies’ sustainability and governance activities to build data sets. Minerva’s datasets are used by Solactive to determine the final constituents in the index.

    The strength of this data-driven approach to ESG is that it can be incorporated into an index, allowing for potentially lower-cost passive management. Limitations and risks of this approach include a lack of direct stewardship and potential for data errors.
  • How are the companies in the index identified?

    The index universe for energy storage technology providers is comprised of projects identified from the Clean Horizon’s Energy Storage Source, classified as electrochemical, having an energy capacity of at least 1 MWh and identified as an energy storage technology manufacturer. The companies must also have a primary listing on an eligible exchange – if a subsidiary, then the parent company will be identified as part of the universe instead.

    The index universe for mining companies is taken from Fastmarkets' Metal Bulletin, including all companies producing battery grade lithium, with their primary listing on an eligible exchange.

    To be included in the index, companies must have a free-float capitalisation of at least US$200m (lower for existing constituents), have a minimum three-month daily trading average of US$1m, and not be classified by FactSet as an “Energy” company.
  • How are companies in ACDC weighted?

    Companies in ACDC are equally weighted, meaning each holding makes up the same portion of the portfolio at each semi-annual rebalance and therefore contribute equally to overall performance.

    The choice of an equal weighting scheme provides investors exposure to the overall sector without a bias towards large-cap stocks, which tend to dominate where holdings are weighted by market capitalisation.
  • Why use ACDC for exposure to battery technology?

    The value chain for battery technology ranges from mining companies to manufacturers of battery storage and storage technology providers. It is a diverse range of industries spanning the globe and ETFs like ACDC can assist investors in obtaining diversified exposure to newer technologies as well as more established companies. In fast-moving and emerging industries, it can be hard to pick the individual winners, so investing in an ETF like ACDC allows investors to access the potential growth across the battery technology megatrend.
  • How can you use ACDC in a portfolio?

    ACDC can be used as a tactical tilt towards emerging technologies in the industrials and materials sector.

    As a thematic tilt towards megatrends, including the trend towards renewable energy and electric vehicles.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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