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

ACDC


Battery Tech & Lithium ETF

Reasons to Consider ACDC

High Growth Potential

Battery technology and lithium are 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 2024

Product Information As of 20 Jun 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 Jun 2024

NAV/Unit (A$) 89.44430000
Currency (NAV) AUD
Shares Outstanding 6,260,477
AUM (A$) 559,964,006.10
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 May 2024

12-Month Yield 3.68%
12-Month Franking Level 4.06%
Distribution Frequency Annually
Distribution History View

Performance Table As of 20 Jun 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -5.77% -5.77% 0.01% 0.66%
3 Months -2.28% -2.08% -0.20% 0.67%
1 Year -11.85% -11.37% -0.48% 0.68%
3 Year p.a. 1.56% 2.35% -0.79% 0.44%
5 Year p.a. 16.52% 17.58% -1.06% 0.46%
10 Year p.a. -- -- -- --
Since Inception p.a. 13.46% 14.37% -0.91% 0.47%

Top Holdings As of 21 Jun 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
4.53 TDK CORP 6869302 9,666.00 285,200 26,054,988
4.47 HD HYUNDAI ELECT BD4HFR9 290,000.00 76,732 24,111,124
4.06 DELTA ELEC 6260734 369.50 1,280,875 21,980,566
4.01 ABB LTD-REG 7108899 51.24 260,309 22,475,264
3.96 ENERSYS B020GQ5 106.46 138,860 22,178,435
3.74 GS YUASA CORP 6744250 3,375.00 668,800 21,333,623
3.63 BYD COMPANY 6536651 237.60 446,965 20,415,444
3.61 RENAULT SA 4712798 50.16 250,617 20,221,396
3.56 WARTSILA OYJ ABP 4525189 18.47 670,544 19,922,198
3.50 SUMITOMO ELEC IN 6858708 2,518.50 824,300 19,621,031
3.48 TESLA INC B616C79 181.57 71,488 19,473,522
3.31 CANADIAN SOLAR I B1GKCH1 16.02 771,461 18,541,453
3.21 BASF SE 5086577 45.54 245,151 17,958,488
3.17 VOLKSWAGEN-PREF 5497168 105.85 104,152 17,733,789
3.15 PANASONIC HOLDIN 6572707 1,296.50 1,427,400 17,490,925
3.13 NISSAN MOTOR CO 6642860 543.60 3,414,400 17,542,376
3.13 HONDA MOTOR CO 6435145 1,663.50 1,110,800 17,464,383
3.12 NGK INSULATORS 6619507 1,983.00 929,700 17,424,492
3.11 MERCEDES-BENZ GR 5529027 64.34 168,058 17,393,353
3.07 SAMSUNG SDI CO 6771645 392,000.00 40,308 17,120,650
2.98 BMW AG 5756029 88.38 117,362 16,684,937
2.96 SEBANG GLOBAL BA 6212564 110,000.00 139,772 16,659,264
2.95 LG ENERGY SOLUTI BNSP8W5 340,000.00 45,153 16,634,451
2.61 MINERAL RESOURCE B17ZL56 59.96 261,058 15,653,038
2.61 SIGMA LITHIUM CO BNM4ZD8 12.03 810,566 14,629,224
2.58 PILBARA MINERALS B2368L5 3.20 4,688,494 15,003,181
2.45 ARCADIUM LITHIUM BM9HZ11 3.30 2,767,701 13,702,516
1.97 SOLAREDGE TECHNO BWC52Q6 34.31 214,274 11,029,542
1.70 BOLLORE SE 4572709 5.85 1,012,042 9,523,519
1.29 IVANHOE ELECTRIC BPF0KH6 9.47 509,456 7,238,089
1.29 AMG CRITICAL MAT B1Z95S1 16.47 272,192 7,211,274
1.19 SAYONA MINING LT BBX4LR9 0.04 193,788,323 6,782,591
0.87 LITHIUM AMERICAS BRBS357 3.89 1,139,503 4,856,793
0.44 CORE LITHIUM LTD B4XFS83 0.09 28,521,485 2,595,455
Holdings are subject to change.

Sector Breakdown As of 21 Jun 2024

Sector Weight (%)
Consumer Discretionary 35.9
Industrials 25.8
Materials 18.5
Information Technology 16.9
Communication Services 1.7
Other/Cash 1.2

Country Breakdown As of 21 Jun 2024

Country Weight (%)
Japan 24.3
South Korea 13.5
Germany 12.5
United States 8.7
Australia 6.8
France 5.3
Canada 4.2
Taiwan 4.1
Switzerland 4.0
China 3.6
Finland 3.6
Other/Cash 9.4

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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