Another Electric Vehicle ETF to Keep an Eye On

The Lithium and Battery Tech ETF has had an outstanding year

Managing Editor
Sep 30, 2021 at 12:06 PM
facebook twitter linkedin

Electric vehicles continue to grow in popularity. As the sector and adjacent markets enter the mainstream, it presents a treasure trove of opportunities for investors. Earlier this week, Schaeffer's Investment Research's Senior Market Strategist Matthew Timpane was a featured presenter at the Benzinga Electric Vehicles Conference. You can view the entirety of his presentation here.

Timpane's slot was so well received, we wanted to further highlight the EV stocks he discussed. We first looked at an EV exchange-traded fund, and now we're going to explore an ETF adjacent to the EV industry.

Matthew: Another ETF is the Global X Lithium & Battery Tech ETF (LIT). LIT is up 33% year to date, in the midst of another great year for that long term exposure that you want from the EV industry. It has about $5 billion in assets and two of its largest holdings, Elba Merrill and BYD are two companies I'm pretty bullish on in the long term.

LIT recently found support at the 20% year to date level, that just happened to be near its 80-day moving average. Throughout time this has been a significant moving average for the ETF, it caps gains when it's going through a little bearish phases, and it's also marked plenty of bottoms throughout time when it's in a bullish phase. If it did break down in the next year, I'd be looking at the $75 mark.


That 361% Fibonacci extension level already found support there once earlier in the summertime. That could be a good area to add exposure to this ETF. Many call this double top.

You can see the formation of a big base area. So if you even if LIT pulls back a little bit, if it breaks out over this level you'll start seeing that outperformance once again. I don't think this is a move that's going to be going anywhere shortly; it's going to be a lot around for a long time.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners