Lithium Miners ETF (ILIT) Hits New 52-Week High
For investors seeking momentum, iShares Lithium Miners and Producers ETF ILIT is probably on the radar. The fund just hit a 52-week high and is up 134.1% from its 52-week low price of $6.46/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
ILIT in Focus
The underlying STOXX Global Lithium Miners and Producers Index comprises of U.S. and non-U.S. equities of companies primarily engaged in lithium ore mining and lithium compounds manufacturing. The product charges 47 bps in annual fees and yields 3.72% annually (see: all materials ETFs here).
Why the Move?
Rising global demand for electric vehicles and energy storage is driving the space. China commands over half of the world’s lithium refining capacity, putting Western economies in a vulnerable position. The U.S. government is striving to reduce dependency, by proposing nearly $1 billion in new funding for critical minerals development and allocating over $3 billion in grants to domestic EV battery projects, as quoted on Investing News.
More Gains Ahead?
ILIT might continue its strong performance given a positive weighted alpha of 67.47 (as per Barchart.com).
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iShares Lithium Miners and Producers ETF (ILIT): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
