The ETF has opened the door to new investment stock market tips for open-minded investors

Published: 26th February 2011
Views: N/A
Ask About This Article Print Republish This Article



 


 The ETF has
opened the door to new investment stock market tips for open-minded investors


The ETF has opened the door to new investment stock market tips for
open-minded investors. Mega-Trend a handful of new and interesting
exchange-traded funds ETFs to the market, but one of the most interesting was
the Global Lithium ETF Lithium is not your typical fuel source, such as oil and
coal, but it can be used to generate power in lithium-ion batteries that fuel
everything from a to an automobile. Because the ETF is the first to concentrate
on the niche commodity, it gives investors a way to play the increasing demand
for lithium Due to the small number of lithium stock plays available, the ETF is
heavily weighted in a few big names. The top three holdings are all lithium
mining companies, and they make up a total of 45%. Chemical & Mining Company of
Chile is the largest lithium producer in the world, and is based close to
Bolivia, which is the "Saudi Arabia of lithium.



Lithium
is a highly reactive metal that currently is not trader on any commodity
exchanges and therefore the new ETF is one of the only ways for
stock trading tips to profit from
higher lithium prices and demand.


Half of the ETF is invested in mining and the other half in battery-related
to companies. The top holding is the Chemical & Mining Company of Chile with
19.33% allocation, followed by FMC Corp at 16.25%, and Avalon Rare Earth Metals
at 8.77%. Another Sizeable position that is worth mentioning is operator's stock
tips Holdings, which comes in at 6.57%. Even though SQM produces a large amount
of lithium,  is not a pure play on the sector because the company has
exposure to other areas in the chemical industry, such as fertilizers and
iodine.


The  has struggled this year with the entire agricultural chemical
sector, but a boost in the sector and the lithium story have the stock moving
once again.


Think Chevy Volt or the Tesla electronic car that uses thousands of small


lithium-ion batteries,  and do not forget about the millions of handheld
devices that use lithium-ion batteries. This is a story that is quickly gaining
momentum and could be one of the mega-trends of the next  operator's stock
tips in mind that lithium is a commodity, but at the same time it offers a clean
alternative to fossil fuels in the future.





This article is free for republishing
Source: http://shimranjain.articlealley.com/the-etf-has-opened-the-door-to-new-investment-stock-market-tips-for-openminded-investors-2074503.html


Report this article Ask About This Article Print Republish This Article


Loading...
More to Explore
 


Ask a Professional Online Now
27 Experts are Online. Ask a Question, Get an Answer ASAP.
Type your question here...
Optional:
Select...