Best Batteries ETFs

Invest in the best batteries ETFs with Interactive Brokers.

You rely more heavily on batteries than you realize. If you have a laptop, electric toothbrush, cell phone or electric vehicle, chances are good that it’s powered by a lithium-ion battery. And as you can imagine, demand for these devices isn’t likely to decline anytime soon.

If you want to take advantage of the rising demand for batteries, you might consider investing in batteries exchange-traded funds (ETFs). Here are seven of the best.

7 Best Batteries ETF Choices

If you’re looking to invest in an industry that is almost guaranteed to grow, check out these winning batteries ETFs.

1. Global X Lithium & Battery Tech ETF (NYSEARCA: LIT)

Just about all investors agree that when it comes to lithium and battery ETFs, LIT is at the top of the list. It has $4.6 billion in assets under management. And while its 0.75% expense ratio is high compared to other options, it is generally worth it given the fund’s diverse holdings and decent performance.

LIT has 39 separate holdings that include lithium miners, battery manufacturers and product manufacturers like Tesla. If you want to invest in battery ETFs, this is the first fund you should look at.

2. ARK Autonomous Tech. & Robotics ETF (NYSEARCA: ARKQ)

ARKQ is another sizable battery ETF with $1.04 billion in assets under management. Like LIT, it has an expense ratio of 0.75%. However, this fund does not focus exclusively on batteries and similar technology; it also gives you exposure to the autonomous transportation and 3D printing sectors.

3. Amplify Lithium & Battery Technology ETF (NYSEARCA: BATT)

BATT tracks the EQM Lithium & Battery Technology Index. It’s been around since 2018 and currently has $147.84 million in assets under management. Its 0.59% expense ratio is also a good bit lower than many other battery ETFs.

Though lithium is in the name, BATT doesn’t only give you exposure to lithium miners and companies that produce lithium batteries. It invests in companies that mine some of the essential metals used in battery production: nickel, lithium, cobalt, graphite and manganese.

4. Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF (NASDAQ: EVMT)

EVMT isn’t solely focused on battery production. Instead, it’s a fund that centers around metals needed to produce electric vehicles. It includes companies that mine iron ore, aluminum, nickel, cobalt, silver, copper, lithium and zinc.

This fund is smaller than some on the list, as it has $13.5 million in assets under management. Its 0.59% expense ratio is fairly standard.

5. VanEck Rare Earth/Strategic Metals ETF (NYSEARCA: REMX)

REMX is a diverse and well-known fund. It tracks the MVIS Global Rare Earth/Strategic Metals Index, and it has $600.11 million in assets under management. Among its holdings are companies involved in the mining and refining of rare metals, including those used to produce batteries. 

REMX has more than 30 holdings that are spread out all over the world. If you invest in the fund, you won’t need to worry about location-specific problems wreaking havoc on share prices. Currently, REMX has an expense ratio of 0.54%.

6. iShares Global Clean Energy ETF (NASDAQ: ICLN)

ICLN is another ETF that doesn’t exclusively focus on batteries. However, in this case, that’s a good thing — the clean energy sector is growing, so the additional non-battery holdings should help share prices rather than hurt them. 

This large fund has $4.13 billion in assets under management, and it tracks the S&P Global Clean Energy Index. All its holdings are somehow involved in clean energy, so it includes shares in solar power and wind power companies. It has an expense ratio of 0.4%.

7. First Trust Nasdaq Clean Edge Smart Green Energy ETF (NASDAQ: QCLN)

QCLN is a large fund with a focus on the green energy sector. It tracks the NASDAQ Clean Edge Green Energy Index. QCLN has $1.48 billion in assets under management and currently boasts an expense ratio of 0.58%.

Like ICLN, QCLN’s broader focus on clean energy is more than likely a recipe for success. Much of the Western world is moving toward green energy, so f this fund’s holdings may be poised for growth.

What is a Battery ETF?

A battery ETF is an exchange-traded fund focusing on companies that produce batteries (and sometimes those that mine and refine battery metals like nickel, cobalt and lithium).

Instead of focusing on a single company in the battery technology industry, a battery ETF investment gives you shares of a whole range of companies. This can be a great strategy for spreading out risk while still giving you exposure to multiple commodities.

Why Invest in Battery ETFs?

In an investment landscape full of many ETF options, why should you choose batteries ETFs? Here are a few reasons.

• It’s a good way to diversify your portfolio: Many of these ETFs include companies that mine and refine battery metals as well as those that actually produce the batteries.
• It’s a sector that is almost guaranteed to grow: Most people predict that the demand for batteries won’t slow down, so you’re very likely to get a good return on investment.
• Raw material supplies will likely decrease: As the metals used to make batteries deplete, share prices are likely to rise.
• You’ll support the development of renewable energy: By investing in batteries ETFs, you’ll know that you’re doing something to help the planet.

Although nothing is guaranteed in the world of investments, the fact that most commodities rise in value during times of inflation is a reason to invest in battery ETFs. Along with investments in gold and silver, these investments can be a great way to hedge against inflation.

Where to Invest in Battery ETFs

Online brokerage firms are ideal for batteries ETF investments. Here are some firms that have been vetted by Benzinga.

Invest in the Future with Battery ETFs

As more companies and individuals have begun to care about climate change and renewable energy, batteries have seen a steady rise in popularity. Commodity investments are volatile so the growing need for battery technology may make these ETFs a smart investment for anyone hoping to diversify their portfolio.

If you aren’t sure which of these ETFs you want to add to your portfolio, Benzinga offers plenty of resources to help you — you can find courses, articles, guides and a helpful form on the site.

Frequently Asked Questions

Best Battery ETFs Methodology

Many companies mine and refine battery metals. So how were these battery technology ETFs selected? Several factors were weighed to choose the winners.

• Growth potential
• Current and past performance
• Assets under management
• Expense ratios
• Total holdings

Depending on what investments you already have in your portfolio, you may find that some of these ETFs are more suitable for you than others. Do your research and don’t be afraid to seek out the advice of a financial advisor if needed.