LIT: The Lithium Trade Has Run Too Far, Too Fast
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Ian BezekInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryGlobal X Lithium & Battery Tech ETF has surged 60% YTD, driven in part by tariff and trade war headlines.Much of LIT’s rally appears sentiment-driven rather than based on underlying profitability or improved fundamentals of its constituents.I also have some concerns about how well the ETF's portfolio mix will capture value created by the lithium sector going forward.Throw in LIT's high expense ratio, slowing EV sales, and a potential global economic slowdown in 2026, and I see this ETF as a "Sell." Just_Super/E+ via Getty Images It's been a great year for investors in lithium, as measured by the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT). LIT shares are up about 60% year-to-date and have recovered much of their lost ground from the past fewThis article was written byIan Bezek23.3K FollowersFollowIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the decade living in Latin America, doing the boots-on-the ground research for investors interested in markets such as Mexico, Colombia, and Chile. He also specializes in high-quality compounders and growth stocks at reasonable prices in the US and other developed markets. Ian leads the investing group Ian's Insider Corner. Features of the group include: the Weekend Digest which covers everything from new ideas to updates on current holdings and macro analysis, trade alerts, an active chat room, and direct access to Ian. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You