An exciting ASX ETF to ride along with the global electric vehicle boom

Some of the top performing shares on the ASX are involved in the lithium space.

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Key points

  • ASX ETFs can offer investors exposure to entire sectors
  • Lithium prices have soared amid the rapid growth in global battery production
  • Saxo expects critical battery minerals will continue to see rising demand

ASX exchange-traded funds (ETFs) offer investors who may not be comfortable with picking individual shares a chance to invest in wider baskets of companies.

There are a lot of ASX ETFs to choose from, tracking all manner of benchmarks, commodities, and industries.

With lithium prices remaining at record highs and numerous ASX listed and global lithium shares shooting the lights out, today we throw the spotlight on the ETFS Battery Tech & Lithium ETF (ASX: ACDC).

Lithium producers leading the charge this year

Some of the best performers on the ASX this year are involved in the lithium space.

As a very lightweight and conductive metal, lithium demand has boomed amid the rapid growth in global battery production as the world moves to decarbonise and roll out fleets of electric vehicles and home battery systems.

Most of which depend on lithium.

So how have the leading ASX lithium shares been performing?

Well, AVZ Minerals Ltd (ASX: AVZ) is up 68% in 2022 and up 587% over the past 12 months.

Core Lithium Ltd (ASX: CXO) has charged even higher, up 156% year-to-date and a whopping 552% since this time last year.

We’ll finish up with Lake Resources NL (ASX: LKE), though there are a number of other ASX lithium shares to spotlight. The Lake Resources share price is up 127% in 2022 and 594% over the past 12 months.

Why this ASX ETF could enjoy rising demand

Jessica Amir is the Australian market strategist at Saxo Markets.

Amir says Saxo believes “that the electric vehicle industry and the critical minerals/ commodities will continue to see rising demand, and policy support, and also benefit from the world striving to be carbon neutral by 2050″.

Amir suggested investors who aren’t into stock-picking but want exposure to the lithium and critical metal boom “could invest or trade in… ACDC that invests in about 30 of the biggest EV and battery technology companies in the world”.

The ASX ETF’s top three holdings are AMG Advanced Metallurgical Group NV (AMS: AMG), Mineral Resources Limited (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS).

While ACDC has been rebounding in recent weeks, up 12% since 8 March, the ASX ETF’s performance has greatly lagged that of lead lithium stocks to date.

Over the past 12 months, the ACDC share price is down 5%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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