Does the ETFS Battery Tech & Lithium ETF (ACDC) pay dividends?

We take a closer look at this exchange-traded fund…

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Key points

  • The ETFS Battery Tech & Lithium ETF is a popular one on the ASX
  • ACDC has given its investors some impressive gains in recent years
  • But how does it fare when it comes to dividends?

The ETFS Battery Tech & Lithium ETF (ASX: ACDC) is certainly one of the more interesting exchange-traded funds (ETFs) on the ASX to watch.

Lithium, green metals, and battery technology are all areas of investing that have seen an enormous level of investor interest over the past year or two. And this ETF covers this space in all its glory. Not to mention its eye-catching, high voltage ticker code.

The ACDC ETF has been around since September 2018. It invests in a basket of global shares that collectively cover battery technology and green metal producers. Some of its top holdings are ASX shares like Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS). But it also counts international giants like Lockheed Martin, Hyundai Electric, and Toshiba Corp.

Since its inception, investors have enjoyed some meaningful returns from this ETF. Since September 2018, ACDC units have averaged a return of 17.8% per annum. That’s despite a loss of 15.5% over the past six months.

But many investors like to invest for income as well as capital gains. So how does ACDC fare in this department? Does this ETF pay out dividend distributions?

ACDC: Does this ASX ETF pay dividends?

Well, the answer to that question is yes. ACDC does indeed pay dividend distributions. It does so once a year, usually on 15 July.

Its last dividend distribution was doled out on 15 July 2021. This was a payment of $6.31 per unit, which came with a small number of franking credits too. This gives the ETFS Battery Tech & Lithium ETF a trailing distribution yield of 7.68% on current pricing.

Take that with a grain of salt though. ETFs like ACDC can be inconsistent when it comes to their distributions. Although investors enjoyed this monster payout last year, the previous two years saw dividend distributions of 79.18 cents per unit and $1.24 per unit respectively.

We haven’t yet heard what kind of dividend distributions are coming investors’ way in 2022 yet. But it will be interesting to see what this ASX ETF comes up with this time.

The ETFA Battery Tech & Lithium ETF charges a management fee of 0.69% per annum.

Motley Fool contributor Sebastian Bowen has positions in Lockheed Martin. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Lockheed Martin. 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 Scott Phillips.

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