Amplify ETFs has launched the Amplify Advanced Battery Metals and Materials ETF (BATT), a professionally managed ETF that seeks to provide exposure to Lithium, Cobalt, Nickel, Manganese and Graphite via publicly-traded stocks.
Companies in the portfolio are principally engaged in the business of mining, exploration, production, processing or recycling of advanced battery metals and materials. BATT constituents must derive 50 per cent or more of their revenue, or be in the top five and have at least 10 per cent of global market share, of any advanced battery material.
“The recent boom in battery-powered electric vehicles, smart devices and large-scale energy storage solutions may be the tip of the iceberg for this investment opportunity,” says Christian Magoon, CEO of Amplify ETFs. “As the demand and science behind efficient battery solutions matures, BATT’s actively managed approach across multiple metals and materials will seek to adapt the fund’s holdings in order to optimise investment exposure to this dynamic space.”
Amplify, which has successfully introduced other first-to-market ETFs that capture future-focused segments of the economy, believes the global battery market will experience growing demand due to the growth of robotics, electric vehicles, artificial intelligence, smart devices and clean energy technology. In addition, the constrained and geographically concentrated supply of battery metals and materials suggests positive movement in prices for these essential building blocks.
“We see a significant opportunity to capitalise on segments of an industry where we are in the early stages of growth. Batteries aren’t just about lithium anymore; investors may need to own a broader basket of metals and materials to best capture the future growth potential associated with the battery market,” says Magoon.
BATT will be co-managed by the Fund’s sub-advisers, Toroso Investments, LLC and Exponential ETFs.