ACDC - ETFS Battery Tech & Lithium ETF

[over9k]

It's on commsec but not on westpac, so I'd say the issue is with westpac.

 

[peter2]

Who'd have thought that lithium prices would continue higher. PLS, GXY and ORE all had strong gains today.

It's time for some Acca Dacca music. It's a Long Way to the Top (if you're holding on).

It's not all good for ACDC holders as the lithium stocks are going up much faster than the ACDC ETF.

 

[peter2]

I've been having some fun trading ACDC over the past few months. Buying low and selling high with some success.

Observations: It's not a margin efficient way to trade the boom in lithium prices. The strong rally in lithium over the past few months has increased the mining margins significantly. The increased margins have seen strong demand for current lithium producers. The prices of these few lithium producers have gone up more (in % terms) than the ACDC - ETF.

Of more interest, I've noticed that my sell orders (via Commsec) have not been displayed in the Commsec market depth of ACDC. My orders have been filled correctly but I'm bemused that they weren't displayed in the MD. I've also noticed some "interesting" transactions at the open before the market maker places their buy and sell orders.

I'm going to leave my thoughts on ACDC at, it's interesting. Overall, it's a poor choice for a short term trader and I also think for a longer term investor as well, unless you desire the investments in overseas companies that may have an involvement with EV batteries.

I think most active investors can create a better R:R portfolio in the EV battery sector than ACDC.

 

[frugal.rock]

Of more interest, I've noticed that my sell orders (via Commsec) have not been displayed in the Commsec market depth of ACDC. My orders have been filled correctly but I'm bemused that they weren't displayed in the MD.

I'm guessing you know this...however your orders may have gone through as NXXT condition codes, which merely means your broker matched the orders in-house, rather than sending to market, not something us general retail mob have any control over.

 

[peter2]

Thanks for the reply but no. My limit sell order (above the last price) was in the market for several days and never appeared in the MD. At first I thought it might be too high above the current price. No notice that the order was rejected and it appeared in the open orders list. Even when the last sale price was within 0.50 of my limit sell order yesterday my order wasn't in the MD displayed by Commsec. My order sold on the open today. I'm assuming the anomaly lies with Commsec but haven't ruled out some involvement by ETF Securities who "make" the ACDC-ETF market.

 

[greggles]

Observations: It's not a margin efficient way to trade the boom in lithium prices. The strong rally in lithium over the past few months has increased the mining margins significantly. The increased margins have seen strong demand for current lithium producers. The prices of these few lithium producers have gone up more (in % terms) than the ACDC - ETF.

I noticed this as well and took a look at the constituents of the Solactive Battery Value-Chain Index, which ACDC is supposed to track, only to find that it was very light on miners of battery metals.

There needs to be another ETF that is more focused on growth that has a larger mining exposure. This ETF turned out to be a little disappointing.

 

[Sean K]

This has taken a battering the past two months. Must have just got caught up in the general tech sell off in the US. NASDAC into Bear territory.

 

[Dona Ferentes]

This has taken a battering the past two months.

Blair Hannon, the head of investment strategy at Global X ETFs, admitted its battery metal exchange-traded fund has suffered net outflows of $19 million year-to-date as investors take profits, after boom-fuelled years of inflows since the fund’s inception in 2018.

The Battery Tech & Lithium ETF (ACDC) has about 15 per cent of its net asset value in lithium miners, including Pilbara Minerals, Allkem, Livent and Mineral Resources, with battery manufacturers including LG Energy, Samsung and Toshiba, and EV leaders like Tesla, Volkswagen and BMW.

“When you buy this [ETF] you get all parts of the [supply chain] curve,” said Hannon. “Compared to a pure lithium fund it has outperformed. If you get something like ACDC, a sell-off in lithium prices benefits the other parts of the supply chain anyway. So, battery suppliers can buy lithium for less cost, and the lower lithium price obviously benefits electric vehicle manufacturers as well.”