Lithium 101
Below is a visual guide to lithium, provided by Global X. The video takes you through the ins and outs of this rising star and what sets lithium apart from its counterparts.
Lithium Applications & Potential from Lithium Applications & Potential on Vimeo.
Investing in LithiumWhen it comes to lithium investing, there are several options on the market that can be used to add exposure to your portfolio. Note that the most direct method of investing in any commodity would be through futures contracts, though such contracts currently do not exist for lithium.
- Lithium ETF (NYSEARCA:LIT): This fund invests in companies around the world that are primarily engaged in some aspect of the lithium industry. Making its debut in 2010, the fund has gathered $60 million in assets and maintains a dividend yield of nearly 2.5%
- FMC Corp. (NYSE:FMC): For those who prefer to hone in on a particular stock, FMC is one of the largest names in the lithium industry. The firm, based in Philadelphia, has a Specialty Chemicals segment that is devoted to lithium products. The stock has a market cap of $8 billion and trades over 800,000 shares on a daily basis.
- Rio Tinto (NYSE:RIO): For those looking for a more diversified play, RIO has just recently allocated more resources for lithium production. The firm mines for a wealth of other commodities and resources like copper, silver, and gold as well. RIO is worth nearly $90 billion and is one of the biggest names in the mining world.
Editor's note: This article by Jared Cummans was originally published on Commodity HQ.
No positions in stocks mentioned.
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