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Global X Battery Tech & Lithium ETF

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100226-2023-08-11-02:32.pdf
FUND MANAGER Global X Management (Aus)
ASX Code ACDC*
APIR
ASSET CLASS EXCHANGE TRADED FUNDS
INVESTMENT STYLE

Each Fund seeks to meet its investment objective by investing in the assets comprising the relevant Index in accordance with the weightings determined and published by the applicable Index Provider.

INVESTMENT PROFILE

The Fund aims to provide investors with a return that (before fees and expenses) tracks the performance of the Solactive Battery Value-Chain Index (the “Index”).

CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 30-08-2018
BENCHMARK Solactive Battery Value-Chain Index (USD)
FUND SIZE Solactive Battery Value-Chain Index (USD)
DISTRIBUTION FREQUENCY Yearly
NO. OF HOLDINGS 28
FEES 0.69% p.a. of the NAV of the Fund
STRUCTURE

Benefits

Benefits

Benefits of investing in the Global X Battery Tech & Lithium ETF

Why ACDC?

Exposure to advances in battery technology

Recent advances in battery technologies have seen the development of the ability to store energy in increasingly smaller and lighter forms. Alternative sources of energy generation and the ability to efficiently store that energy is ushering in a new paradigm in energy consumption. Lithium-ion batteries are the key, but far from the only, focus of current developments. Technologies such as lead, nickel, sodium, zinc and flow batteries are also emerging at a rapid rate.

Rising demand for lithium

Growth in usage of mobile phones and other personal electronic devices has driven demand for lithium in recent years. Electric vehicle demand is already high and expected to increase substantially in coming years. Grid storage technologies are also anticipated to grow.

Liquidity

ACDC holds only stocks trading on recognised developed market exchanges and the Index includes filters on market capitalisation and daily trading volume.

Transparent

Full portfolio holdings for ACDC are made publicly available daily via https://www.globalxetfs.com.au/funds/acdc/.

 

Benefits of investing in the Fund include:

  • Australia's first ETF to provide exposure to the energy storage and production megatrend
  • ACDC provides investors with access to companies involved in battery technology and lithium mining
  • The index covers all electro-chemical storage, not just lithium, in order to capture the growth of the whole industry
  • ACDC is a global portfolio covering multiple regions and sectors and adopts an equal weight strategy

 

RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

Index Objective

The Solactive Battery Value-Chain Index aims to track the performance of a basket of stocks of companies that are providers of certain electro-chemical energy storage technology (i.e., battery technology) and mining companies that produce metals that are primarily used for manufacturing batteries. A battery is a device consisting of one or more electro-chemical cells that are capable of generating electrical energy from chemical reactions. The index selects stocks of such companies, across various equity markets, which meet certain size and liquidity requirements. The index is equally weighted and is calculated in U.S. dollars.

 

How to use ACDC in a Portfolio?

  • Alternatives; exposure to growth in the battery technology thematic
  • Tactical tilt towards emerging technologies in industrial and materials sectors

 

Mandate

How we invest your money

Battery Investment Case Summary

Battery technologies and lithium mining companies are considered the primary investor gateway to a future "disruption megatrend.

This trend will transform the way we live our lives and will be greener by reducing combustion engine pollution.

Investors can gain exposure to the new energy storage megatrend through ACDC.

 

Index methodology

The methodology employed by Solactive in calculating the Index can be found at www.solactive.com

 

Index tracking

Each Fund will attempt to (before fees and expenses) fully replicate the performance of the relevant Index by investing its assets in a portfolio of securities that comprise the Index in proportion to the weight assigned to each security within the Index.

Any changes in the composition of an Index, whether due to scheduled rebalancing or other unscheduled events (e.g. corporate actions), will generally be reflected in the portfolio of securities held by a Fund as soon as practically possible.

In certain circumstances, it may not be possible or practical for the Responsible Entity to exactly replicate the Index. For example, trading in particular securities may be suspended. In other circumstances the exact replication of the Index may be impractical or excessively costly, for example where the Index comprises a large number of securities that are assigned small weights.

To assist investors, each Fund's full portfolio holdings will be published on a daily basis on https://www.globalxetfs.com.au/ at the same time that Authorised Participants and market makers are provided with portfolio composition files.

Each Fund may hold derivative contracts from time to time, such as exchange traded options written on the Index or its constituent securities, and other investments that do not comprise the Index, but help to achieve the investment objectives of that Fund. These other investments that do not comprise the index may include for example:

 

  • cash or short term deposits;
  • related securities such as tradable rights resulting from corporate actions undertaken by Index constituents;
  • depository receipts or other securities that may be substituted for Index constituents that are impractical or costly to trade; and
  • futures, options, swaps or other ETFs with similar exposures to the Index that may help minimise deviations from the Index, where appropriate.

 

These are expected to be used in limited circumstances.

Cash balances may also be held in each Fund from time to time. None of the Funds will engage in securities lending.