Introduction

An Exchange-Traded Fund (ETF) is a good way to participate in the lithium production market. It allows investors to own a variety of companies in a single fund, providing diversification across companies with different factors and locations.

A lithium ETF is a good choice if you think that the lithium market is growing significantly. Data suggests that this trend will continue in the future.

The global lithium market was worth $22.2 billion in 2023 and is projected to reach $89.9 billion by 2030, as per Fortune Business Insights. Furthermore, global lithium production is expected to increase from 964,000 metric tons in 2023 to 1.2 million metric tons in 2024, indicating a rise in activity in the lithium industry.

The Horizons ETF, launched in June 2021, aims to capitalize on this situation by investing in global companies involved in mining or producing lithium, lithium compounds, and related components.

Conclusion

The largest holdings in the fund include Mineral Resources (12.2%), Pilbara Minerals Ltd. (11.4%), Albemarle (9.2%), Arcadium (8.8%), and Sigma Lithium Corp. (6.6%). This ETF trades on the Toronto Stock Exchange, with an expense ratio of 0.89% and an annualized distribution yield of 3.1% as of Jan. 16. With $27 million in net assets, it is considered a smaller ETF in size.