ProShares launches an ETF meant to capitalize on the growing demand for batteries
Dec. 01, 2022 10:48 AM ET
Rivian Automotive, Inc. (RIVN), NIO, LCID, LI TSLA
By: Jason Capul, SA News Editor 5 Comments
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The rise of electric vehicles and other green-energy products has increased the demand for batteries, a trend ProShares is looking to capture with the launch of the ProShares S&P Global Core Battery Metals ETF ( ION). The fund, which hit the market on Thursday, offers exposure to global stocks involved in the mining of lithium, nickel or cobalt.
According to ProShares research, global demand for batteries is anticipated to expand by 25% annually until at least 2030. The increased demand for batteries can be accredited largely to the adoption of EVs, thanks to companies such as Tesla ( TSLA), Rivian Automotive (NASDAQ: RIVN), NIO Inc. (NYSE: NIO), Lucid Group (NASDAQ: LCID), and Li Auto (NASDAQ: LI).
More than 50% of the new ETF's holdings reside in Australia, China, South Africa, or Indonesia. The U.S. represents 8.77% of the fund's portfolio.
In total, ION has 41 holdings and is attached with a 0.58% expense ratio.
The fund has not moved much early in its debut, with ION trading -0.5% in Thursday's intraday action.
As the fund launched, Michael Sapir, ProShares founder and CEO stated: “An energy revolution is underway that is transforming the way we power our lives.” |
