34.10 -0.81 (-2.32%)
Before hours: 4:15AM EDT
|Bid||0.00 x 1300|
|Ask||0.00 x 900|
|Day's Range||34.10 - 34.98|
|52 Week Range||17.83 - 34.98|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||25.74%|
|Beta (5Y Monthly)||1.34|
|Expense Ratio (net)||0.75%|
Job growth in the solar energy sector ticked higher in 2019—the first time in about three years—showing that the effects of import tariffs are starting to wane for solar energy. One major factor the article cited in determining whether the solar energy industry can continue its strength is trade.
Global investment management firm Invesco is a veteran of the ETF game, and offers a plethora of products for investors who want to get knee-deep into everything from fixed income to smart beta. One trend the firm is seeing is more investor demand for funds that focus on renewable energy. According to a report in Investor’s Business Daily, Invesco has $1.2 trillion in assets under management, which include over $273 billion in ETFs.
It might be January with cold climate abound in most parts of the world, but it could be fun in the sun for solar energy investors throughout 2020 and beyond. As the world continues to move towards more energy sources that don’t rely on fossil fuels, solar is part of that ever-growing initiative. “Last year, SEIA (Solar Energy Industries Association) announced the 2020s would be the Solar+ Decade,” wrote Silvio Marcacci in Forbes “This year we are setting the wheels in motion.
Investment firm Canaccord Genuity gushed over electric carmaker Tesla by raising its price target by more than $100 as they expects the trend toward electric vehicles “will only accelerate in 2020.” This ...
This move towards energy efficiency should favor lithium-focused exchange-traded funds (ETFs), which investors should keep their eyes on. Over the last ten years, a surge in lithium-ion battery production drove down prices to the point that — for the first time in history — electric vehicles became commercially viable from the standpoint of both cost and performance. With the popularity of electric vehicles spurring demand for automobile offerings from carmakers like Tesla, the lithium industry has taken a new turn.
As the world shifts toward cleaner energy and away from fossil fuel dependence, the development of electric batteries and energy storage could continue to fuel a boom in the battery production industry, along with related exchange traded funds. “Massive investments in battery manufacturing and steady advances in technology have set in motion a seismic shift in how we will power our lives and organize energy systems as early as 2030,” researchers from Rocky Mountain Institute wrote in Breakthrough Batteries: Powering the Era of Clean Electrification, CNBC reports. UBS projects that over the next decade, energy storage costs will decline between 66% and 80%.
Traditional sources of energy like oil are constantly being challenged by alternative sources as more green initiatives become paramount, which makes alternative energy ETFs an option when investors want exposure to the energy sector. “This year will likely be remembered as a period of technology consolidation rather than breakthrough innovation in the energy industry,” wrote Jason Deign in Green Tech Media. One ETF to look at is the Global X Lithium & Battery Tech ETF (LIT).
Global EV sales dropped for the first time in July. But the long-term prospects look bright. Is it the time to buy the slowdown in the EV market with these ETFs?
[Editor's note: "10 Lithium Stocks to Buy Despite the Market's Irrationality" was previously published in July 2019. It has since been updated to include the most relevant information available.]No matter how innovative or utilitarian a new platform may be, all modern technologies require a catalyst to operate. For most devices, this requirement translates into a lithium-based power source. Nowadays, almost everything we use runs on the silver-white metal. Logically, the idea of buying lithium stocks is a frequently made suggestion.However, the markets sometimes deploy their own logic, which seemingly runs counter to the fundamentals. For instance, industry demand for lithium remains robust, and is likely to increase as electronics manufacturers pump out smart devices. Yet the benchmark exchange-traded fund Global X Lithium ETF (NYSEARCA:LIT) is down approximately 28% over the past year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Best Tech Stocks to Buy Right Now Why the disconnect between lithium stocks and underlying industry demand? Mostly, experts in the field forecast an overabundance of supply due to mining companies ramping-up production. Additionally, last year Morgan Stanley analysts predicted a massive drop in the commodity's price over the next few years that could outpace even tremendous demand from electric-vehicle companies.Of course, the other major concern is a more recent development: The escalating U.S.-China trade war. I say escalating because while the two sides are talking, we're seeing no substantive evidence of a potential deal. Continuing rhetoric isn't conducive to the success of lithium stocks.Let's not forget that China has a massive stockpile of lithium. Furthermore, they regard the commodity as "white petroleum," and are actively seeking to dominate its supply chain. Although opinions vary on this dynamic, in my view, that's net bullish for lithium stocks due to the tech industry's ever-rising demand.With that in mind, here are my ten picks for lithium stocks to take advantage of the market's irrationality. Albemarle (ALB)Several of the lithium stocks that analysts commonly discuss are admittedly speculative affairs. As a result, the downturn in the lithium market has severely and disproportionately impacted the industry's direct competitors. But for a solid, renowned organization like Albemarle (NYSE:ALB), the selloff presents a viable contrarian opportunity.Source: fdecomite via Flickr (Modified)I'm not going to beat around the bush: ALB stock has taken a massive beating, even compared to the lithium industry's bloodbath. Over the past year, shares have lost 35% in the markets.That said, I'm encouraged with some positives in the company's financials. After absorbing a disappointing dip in revenues in 2016, Albemarle bounced back the following year. The growth continued in 2018 with revenues growing from $3.07 billion to $3.37 billion. ALB reported Q2 earnings per share that beat analysts' consensus estimate and revenue that came in slightly below the average estimate. But it raised its full-year EPS guidance.Despite geopolitical saber-rattling, the outlook for lithium remains strong. Experts forecast nearly a 9% lift in global demand through 2019. Thus, the present weakness in ALB stock is a great entry point. Sociedad Quimica y Minera (SQM)Due to its sheer dominance in the sector, no discussion about lithium stocks is complete without mentioning Sociedad Quimica y Minera (NYSE:SQM). SQM is based in Chile, which according to CNBC enjoys the world's largest lithium reserves. In fact, CNBC was quite emphatic about this point, noting that no other nation comes close to Chile's 7.5 million metric tons of the hotly demanded metal. Click to Enlarge Source: Shutterstock Unfortunately, as with many other lithium stocks, SQM suffers from a divergence between fundamental bullishness and technical trading. Over the past year, shares are down 42%.But what's truly compelling about SQM stock is the general stability of the underlying company's host nation. Historically, relations between the U.S. and Chile are favorable. While that might have changed over the past two-and-a-half years, the U.S. still represents a critical trading partner to Chile. * 7 Best Tech Stocks to Buy Right Now When you're dealing with lithium stocks, you're already in a volatile market. With SQM, you can at least take away some political variables. Tesla (TSLA)For some time, Tesla (NASDAQ:TSLA) was one of my favorite tech firms to discuss. Much of my enthusiasm had to do with CEO Elon Musk, a man who consistently thinks out of the box. Click to Enlarge Source: Shutterstock But for owners of TSLA stock, I'm sure many of them wish he would stay in the box occasionally. For all the positives that Tesla delivered to the technological and scientific communities, the CEO made multiple unforced errors.You can take a look at the chart for TSLA stock and see what those errors -- along with a general lack of focus -- have done. It's not pretty.In the spirit of full transparency, I've lost patience with Musk. I also have some questions about the effectiveness of Tesla vehicles.That said, if you want to speculate on lithium and battery stocks, you may want to consider TSLA. Recently, Musk suggested that Tesla may get into the lithium-mining business to support the company's larger-scale growth plans.Out of the crazy things Musk has said recently, this is one that finally makes sense. Although I'm not entirely convinced, commodity bulls may find that this is the perfect turnaround narrative. Panasonic (PCRFY)Speaking strictly from a product fanbase perspective, few companies generate as much buzz as the aforementioned Tesla. I've repeatedly called Elon Musk eccentric, but that same eccentricity inspires him to create aesthetically and technologically stunning cars. However, many folks might not appreciate just how important of a role Panasonic (OTCMKTS:PCRFY) plays in Tesla's success. Click to Enlarge Source: Shutterstock When most people hear the name Panasonic, they immediately think about consumer-electronic devices. While that's very much part of their business and legacy, the company is also shifting heavily toward lithium-based technologies.Panasonic and Tesla developed a strong if somewhat under-appreciated partnership. Notably, Panasonic manufactures Tesla vehicles' lithium-ion batteries at Tesla's vaunted Gigafactory. * 7 Best Tech Stocks to Buy Right Now More importantly, all signs point to the two companies continuing their relationship into other business ventures. Call it a corporate "bromance" that looks to be a viable opportunity for long-term gains. This idea gets more credibility considering that PCRFY has suffered the same fate as other lithium and battery stocks. PCRFY is down roughly 5% since the year-ago period.But if Tesla manages to get out of its funk, I can see PCRFY tagging along for the ride. Additionally, Panasonic can use its acumen with other key tech-based partnerships.Livent (LTHM)In the entertainment world, audiences look forward to spin-offs to provide further insights into favorite plotlines and characters. But within the investing segment, spin-offs are touch-and-go affairs. Click to Enlarge Source: FlickrJust take a look at Livent (NYSE:LTHM). Formerly the lithium arm of FMC (NYSE:FMC), LTHM stock began life as its own publicly traded entity in October 2018. To put it mildly, results are not favorable, with shares down a whopping 63% since the initial public offering.But much of that pain didn't start until May, when Livent disappointed for its first-quarter earnings report. Management cut its full-year revenue and profit forecasts due to weak demand, particularly for its higher-end lithium products. Even worse, it looks as if there will be a class-action lawsuit tied to the company's IPO.But lithium demand broadly is not going away. From smaller electronics to large batteries, everyone is diving into this sector. Therefore, LTHM stock attracts as a speculative contrarian opportunity. Power Metals (PWRMF)Contrary to what some may believe, not all lithium-mining processes are the same. Currently, the two most popular methods are lithium brines and lithium-cesium tantalum pegmatites or more commonly referred to as "hard rock." Click to Enlarge Source: Shutterstock Lithium brines represent the most popular method to which most lithium stocks are levered. However, the drawback is that the process is vulnerable to weather-related issues.Given that industry demand for the metal is constantly rising, unfavorable weather could severely impact production. To get around this issue, lithium miners are exploring hard rock, which is essentially weather-independent.One mining company that's putting the hard-rock concept to the test is Power Metals (OTCMKTS:PWRMF). With several projects spread around resource-rich Canada, Power Metals aims to be a significant provider of lithium. Plus, the company's geographically stable region is a big positive for PWRMF stock. * 7 Best Tech Stocks to Buy Right Now That's the good news. The not-so-great news is that PWRMF is a genuine, over-the-counter penny stock. Shares are down 68% over the past year, which tells you all you need to know. Still, if you're looking for a potentially explosive contrarian play among lithium and battery stocks, Power Metals is it. Just bet carefully and responsibly. Lithium Americas (LAC)Lithium Americas (NYSE:LAC) is a direct but completely speculative gamble on the growth potential of lithium stocks. While LAC earned itself a healthy dose of street cred with its joint venture with Sociedad Quimica y Minera, the company has no production assets. Click to Enlarge Source: Shutterstock That's not necessarily a deal-breaker as it has legitimate plans to attain those assets. Still, you're taking a risk that management will follow through.And while the markets have not been kind to lithium stocks, LAC has already climbed back into gain territory adding more than 18 percent year over year.I believe that analysts' consensus bearishness toward the lithium industry is overplayed. Yes, commodity prices fluctuate year-to-year for various reasons. However, the demand for lithium is broadly trending higher.It's not just electric vehicles and other physically imposing technologies that require lithium. Consider that the burgeoning e-cigarette or vaporizer market requires a healthy lithium supply chain to keep running.So long as the drive for innovation exists, so too will lithium demand. This adds some measure of confidence to the otherwise speculative LAC stock. Galaxy Resources (GALXF)Most direct plays in the lithium sector invariably involve mining stocks. Even in the best circumstances, commodity miners aren't known for their stability and reliability. That said, one of the better ways to help mitigate this risk is to seek companies with diversified portfolios. Galaxy Resources (OTCMKTS:GALXF) is one such example. Click to Enlarge Source: Shutterstock Galaxy's primary claim to fame is its Sal de Vida project, located in northwest Argentina. Situated in what industry experts term the "lithium triangle", the area produces more than 60% of global annual lithium supply.Beyond that, GALXF has projects in its native Australia, as well as Canada. Both regions are geopolitically stable, eliminating a major headache for investors. * 7 Best Tech Stocks to Buy Right Now Regarding risk factors, you should note that GALXF is now a legitimate penny stock with a share price under $1. During the past year, shares have plummeted over 85%. Some of that is due to the volatility of a relatively new market.Certainly, that's a distraction for Galaxy and other lithium stocks. However, do note that automakers like Toyota (NYSE:TM) could help pick up the slack. Toshiba (TOSBF)Similar to Panasonic, Toshiba (OTCMKTS:TOSBF) is primarily known for its electronic devices, particularly its laptop computers. While their primary businesses are unlikely to change, Toshiba is shifting resources heavily toward lithium technologies. It has already achieved substantial success with high-power, quick-recharging batteries, with more innovations in the pipeline. Click to Enlarge Source: Shutterstock And while TOSBF is a legitimate play on lithium-based battery stocks, its multi-varied product portfolio affords it volatility protection. Shares are up roughly 8% year-to-date, despite taking a severe tumble beginning in May.The other advantage for Toshiba is that the company has suffered from prior missteps. Having taken the ugliness out of the way, the company is on a recovery path.As such, TOSBF offers meaningful exposure to lithium while effectively acting as a hedge. Pilbara (PILBF)Taking a cue from other lithium stocks, Pilbara (OTCMKTS:PILBF) has absorbed a beating. On a YTD basis, PILBF stock is down 33%. Over the trailing 52-week period, the Australian lithium-tantalum miner has dropped a staggering 59%. Click to Enlarge Source: FlickrOf course, this specific mining segment is in a tough spot. While demand is broadly rising, economic tensions between the U.S. and China cloud matters. That conflict has hurt automotive forecasts for EVs, which has deflated sentiment for lithium stocks.Still, despite the ugliness around PILBF stock, I like its potential as a high-risk, high-reward opportunity. Pilbara gets its name from Australia's resource-rich Pilbara region.And the company's Pilgangoora Project sits atop one of the largest lithium-ore deposits in the world. * 7 Best Tech Stocks to Buy Right Now A major plus for PILBF is that its key mining project is near established infrastructure. That means it can get its products out to port and feed global demand when it returns.It's a long shot, but PILBF stock features an intriguing narrative, especially at these deflated prices.As of this writing, Josh Enomoto was long TOSBF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy The post 10 Lithium Stocks to Buy Despite the Market's Irrationality appeared first on InvestorPlace.
The Global X Lithium & Battery Tech ETF (NYSEArca: LIT) is trading lower this year, indicating some investors may not be fully pricing in growth in the global electric vehicle market. LIT, which is nearly ...
The S&P 500 is up nearly 19% year-to-date and in the world of exchange traded funds (ETFs), about 90% of those trading in the U.S. are in the green this year. In other words, stocks and ETFs that are slumping this year really standout and for all the wrong reasons.To be fair to this year's list of bad ETFs, many of these funds are leveraged products. Those funds are not intended to be held over many months and the longer leveraged funds, the better chances they deviate from the underlying investment objective and turn into bad ETFs.In an additional effort to be fair, it should be noted that some of 2019's currently bad ETFs do have the potential to get their respective acts together and join the pantheon of funds that are prospering.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell This Summer Earnings Season Let's have a look at some of this year's supposedly bad ETFs to see which ones could see extended struggles and which ones could offer investors compelling opportunities. Global X Lithium & Battery Tech ETF (LIT) Source: Shutterstock Expense ratio: 0.75%The Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) is down just 2.08% year-to-date, making it a "bad ETF" relative to the broader market, but there is some hope for a rebound here, particularly if Tesla (NASDAQ:TSLA) can continue bolstering the case for investors to consider the electric vehicle theme, the primary end market for lithium.Home to nearly $530 million in assets under management, LIT tracks the Solactive Global Lithium Index and is one of the longest-running, most successful thematic ETFs. LIT has been a bad ETF this year in part because it has not been responsive to improve electric vehicle sales, a scenario that could reverse in LIT's favor. Additionally, data suggest investors should buy into the notion that the lithium market is oversupplied."The possibility of an oversupply of lithium chemical is a myth, the president of California-based Global Lithium, Joe Lowry, said this week," reports Valentina Ruiz for Mining.com. "Addressing the audience at the conference Paydirt 2019 Latin America Downunder, Lowry blamed the spread of such a 'myth' on 'big bank' analysts and the Chilean regulator CORFO. In Lowry's view, there have been misunderstandings regarding CORFO's reports related to its revised agreements allowing Albemarle and SQM to produce more material from the Atacama brine resource." Invesco Dynamic Energy Exploration & Production ETF (PXE)Expense ratio: 0.65%History continually shows that when it comes to bad ETFs, exploration and production funds, such as the Invesco Dynamic Energy Exploration & Production ETF (NYSEARCA:PXE) certainly fit that bill when oil prices decline. These funds are usually more volatile than their integrated oil peers and are more sensitive to crude's price action in either direction.Said another way, PXE and rival funds are bad ETFs when oil is falling and often good ETFs when the commodity rises. PXE is down almost 6% this year and while there are other funds with far worse performances, there are some warning signs to consider with this bad ETF. * 7 Stocks to Buy This Summer Earnings Season For starters, losses are accelerating as about 80% of PXE's year-to-date loss was accrued just last week. Additionally, the fund resides more than 42% below its 52-week high and almost 17% below its 200-day moving average. With oil scuffling and its technicals weak, PXE has many of the hallmarks of a bad ETF over the near-term. First Trust Natural Gas ETF (FCG)Source: Shutterstock Expense ratio: 0.60%Keeping with the theme of struggling energy ETFs, there is the First Trust Natural Gas ETF (NYSEARCA:FCG), which is historically a bad ETF. Making matters worse for FCG, this can be a bad ETF even when natural gas prices are rising.How bad is this bad ETF? It's lower by 44.28% over the past year while the largest equity-based energy ETF is lower by 16.46% over the same span. As is the case with the aforementioned PXE, FCG's losses are accelerating. This bad ETF is lower by 11.56% this year after a 7.54% loss last week.And like PXE, FCG's technicals are horrendous. This bad ETF labors 23.49% below its 200-day moving average and has not closed above that technical indicate since last November. As we noted earlier, some of the bad ETFs highlighted here have the chance to be good funds down the road. It appears doubtful that will be true of FCG. iShares MSCI Chile ETF (ECH)Source: Shutterstock Expense ratio: 0.59%With Chile being the world's largest lithium-producing nation, the iShares MSCI Chile ETF's (NYSEARCA:ECH) status as a bad ETF is similar to that of LIT's. That is to say, ECH isn't a particularly bad as evidenced by a year-to-date loss of 1.69%. In addition to speculation that the lithium market is oversupplied, Chile's economy is levered to another commodity.The country is also the world's top copper producer, meaning there are often tight connections between the strength of Chilean stocks and that of the Chinese economy. If the world's second-largest economy slows, ECH is likely to labor in the bad ETF category. While ECH has the potential to shed that label, it may take a while because fund managers aren't rushing to embrace Chilean equities. * 5 Biotech Stocks to Buy for a Strong Growth Prognosis "For Chilean stocks, Itau BBA sees little to be excited about given weak earnings momentum," according to Bloomberg. "Even after a poor first half, the price-to-estimated-earnings ratio for stocks in the MSCI Chile Index is 15.7, the richest multiple in the region." iShares MSCI South Korea ETF (EWY)Source: Shutterstock Expense ratio: 0.59%Down less than 1% year-to-date, the iShares MSCI South Korea ETF (NYSEARCA:EWY) is one of the best of the bad ETFs and could easily right its course to finish this year in the green. A good portion of EWY's misfortunes this year are attributable to its position as a tech-heavy ETF and one that was stung by the US/China trade rift. Still, there is a lot to like with South Korean stocks."Korea's sovereign ratings balance robust external finances and a strong macroeconomic performance with ongoing geopolitical risk from the relationship with North Korea, and longer-run challenges of rapid population ageing [sic] and low productivity," said Fitch Ratings in a recent note.EWY is one emerging markets ETF that could shed its bad ETF status if the Federal Reserve proceeds with cutting interest rates."A deeper rate cut by the Fed would weaken the dollar, providing a short-term momentum to South Korean stocks, said Ryoo Yong-seok, an analyst at KB Securities," according to Reuters. Global X Uranium ETF (URA)Source: Shutterstock Expense ratio: 0.69%The Global X Uranium ETF (NYSEARCA:URA) has been around nearly nine years and has spent a considerable chunk of that time declining or stuck in a rut. Earlier this year, this bad ETF rallied, but has since given back nearly all of those gains. The uranium fund is down just 0.60% year-to-date, so there are definitely worse dogs out there, but the issues with this fund are how long it will be bad for and how trustworthy its rallies are.In some states, there is political momentum against increased uranium mining. That said, the White House stands in favor of uranium production.Domestic "uranium producers recoup a little of last Friday's losses that followed reports Pres. Trump would decline to issue quotas for domestic uranium production, which the White House later confirmed," according to Seeking Alpha. * 10 Stocks to Buy From This Superstar Fund Plus, there are strong long-term fundamentals underpinning URA because big developing markets like China and India are embracing uranium as a way of cutting down pollution. All of this is to say URA can easily shed its bad ETF status. Invesco Dynamic Pharmaceuticals ETF (PJP)Source: Shutterstock Expense ratio: 0.57%In an effort to end this piece on a positive note, we bring you a bad ETF that has the potential to be a legitimate rebound story: the Invesco Dynamic Pharmaceuticals ETF (NYSEARCA:PJP). As has been widely noted, pharmaceuticals stocks have been under intense politically-induced pressure this year, explaining why PJP is lower by 7.47%.Large-cap pharmaceuticals names have endured a lot of that punishment, which has been bad news for PJP, an ETF where the 30 holdings have an average market value of $79 billion.PJP's underlying index "is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco.The healthcare sector has been a laggard this year, but the sector does not lack for supporters or those betting it will be a second-half rebound story. If pharmaceuticals stocks can stay out of the political limelight for awhile, PJP has all the makings of a redemption story.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post 7 Bad ETFs That Just Aren't Worth the Trouble This Year appeared first on InvestorPlace.
The Global X Lithium & Battery Tech ETF (LIT) is lower by 3.22% year-to-date, but the fund could be poised to rebound as Tesla Inc. (TSLA) gobbles up more lithium, potentially boosting prices of the commodity along the way. LIT, which is nearly nine years old, tracks the Solactive Global Lithium Index. One of the oldest thematic ETFs, LIT is designed to provide exposure to “the full lithium cycle, from mining and refining the metal, through battery production,” according to Global X.
NEW YORK , July 10, 2019 /PRNewswire/ -- Global X ETFs, the New York -based provider of exchange-traded funds (ETFs), today announced the inclusion of three additional ETFs to Schwab ETF OneSource, one ...