Hedge Fund Drives Lithium ETF Creation

Jul 28 2010 | 12:11pm ET

Investors seeking an easy and liquid way to invest in lithium—without having to worry about storing the highly-reactive and flammable metal—can now do so on the NYSE Arca exchange, thanks to a hedge fund.

Exchange-traded fund firm Global X Management last week launched Global X Lithium. It did so at the urging of hedge fund MC Capital Advisors, which has seeded the ETF, and in exchange will share in half of its profits.

MC Capital pushed Global X to launch the fund after being urged itself by a client, Bolivian hand-held device mogul R. Marcelo Claure. Bolivia has one of the world’s largest deposits of lithium, which is not traded on any commodity exchange.

Claure told The Wall Street Journal that lithium is the “commodity of the future.” Lithium is an important component in batteries and is used to treat bipolar disorder and depression. Lithium batteries are expected to become increasingly important in the movement towards electric cars.

The ETF does not itself invest in physical lithium, nor in lithium derivatives, as there are none of the latter. Instead, it seeks to replicate the Solactive Global Lithium Index through stocks of companies engaged in lithium mining, exploration, investment and lithium-ion battery production.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note