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Battery Technology – don’t bet on lithium alone..

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7 år sedan

den

1 februari, 2018

powered electric vehicles. But what is the risk of lithium being usurped by an alternative material? Battery Technology – don’t bet on lithium alone..

Lithium is currently the material of choice to produce batteries in a whole range of devices where mobile energy is required, the most prolific of which being energy storage, mobile phones and battery-powered electric vehicles. But what is the risk of lithium being usurped by an alternative material? Battery Technology – don’t bet on lithium alone..

The realities of lithium as an investment

There is huge investor interest in lithium and more broadly in battery/mobile energy technology at the moment, the question is raised in almost all meetings I have with clients who are looking for ways to invest in the industry. Investors are looking to future-proof their portfolios. Lithium is a growing technology with great potential future prospects while theoretically providing a form of hedge against the expected secular decline in the oil industry, which is facing the risk of cannibalisation from the rise of electric vehicles.

The caveat to this success of lithium

The caveat to this success of lithium is that it won’t be a direct path to success for varied reasons:

Electrical grid infrastructure – Currently the electricity grid does not have the required capacity to accommodate this change. According to the Green Alliance most residential streets do not have capacity for more than 6 cars to be charged at any time and as such would require significant infrastructure upgrades.
Affordability – The average cost of a car is US$24,000, with the cheapest electric car being $33,000, therefore despite the falling costs it still has a long way to go before it can properly compete with internal combustion cars.
The internal combustion engine –Electric vehicles are not only being challenged on price, significant improvements are being made with the internal combustion engine. The “thermal efficiency” of most petrol engines currently peaks at 25%, with a theoretical maximum of 50%, giving significant scope for efficiency gains. The latest battery packs are priced at US$350/kWh, while internal combustions engines are priced at around US$100/kWh. Costs have been falling rapidly for batteries but there is still a fair way for them to go for them to compete.

Despite all the news of battery supply problems at Tesla, lithium prices are 10% above the 90th percentile of the cost curve suggesting in the short term there is potential for a price correction.
Rare earth metals are commonly used in lithium battery production, and supply squeezes are common due to supply being highly concentrated in politically volatile countries. Additionally, child labour has been used in the past and raises questions about their suitability in today’s more ethical portfolios.
There is no futures market and no exchange for lithium; most deals are done between producers and manufacturers directly.
Lithium equities also do not have a particularly good correlation to the lithium carbonate price, and in fact have a much closer correlation to the oil price.

There are other competing battery technologies that could quickly unseat lithium as the material of choice. We have summarised the key battery technologies currently being researched or developed that pose a potential threat to lithium.

Hydrogen fuel cells

Hydrogen fuel cells have been in use for some time in varied forms, led by Japan where their use in vehicles has been met with mixed success. It is a very common element and on a per joule of energy basis, a hydrogen car will go further than a lithium car.

The biggest challenge so far has been capturing and storing hydrogen. In the US there are currently only 35 commercial hydrogen refuelling stations.

Due to these infrastructure constraints they are typically confined to public vehicle use, rolling out infrastructure for personal vehicles would be time consuming and expensive. Hydrogen powered vehicles are in development by some of the leading car manufacturers but there are unlikely to be popular until the infrastructure is in place.

Magnesium solid-state

Magnesium batteries have been commercialised as primary batteries, and are an active topic of research for secondary (rechargeable) batteries. Magnesium batteries offer inflammable batteries with a higher energy density than lithium ideal for cars where safety and mileage are paramount. Magnesium is also a widely traded, abundant material but so far it hasn’t found success as a rechargeable battery. The biggest challenge for magnesium has been making a solid-state rechargeable battery, but the Berkeley Lab Joint Centre for Energy Storage Research has recently discovered the fastest magnesium-ion solid-state conductor – a major step towards making rechargeable batteries a reality. However, it has a long way to go before a battery is likely to be produced.

Lithium Sulphur

Lithium Sulphur batteries could have 40% higher energy density than the lithium-manganese and the lithium-cobalt batteries we use today. Their wider use would also help the problem of producers having to source rare earth metals such as cobalt and manganese from politically unstable countries and likely reduce costs for consumers. The key issue for lithium-sulphide batteries is the extra mass required for a conducting agent and the risk of an irregular discharge leading to safety concerns.

Battery technology opportunities come in various forms

While lithium the metal is difficult to invest in and lithium equities do not accurately track the lithium price, there may be some indirect opportunities. Currently normal internal combustion engine cars use 20kg of copper, hybrids use 40kg and electric vehicles use 80kg, primarily in the wiring harnesses that transmit power to the drivetrains, the drivetrain themselves and the battery.

We believe that lithium technology, despite its potential for success is risky due to the potential for it being usurped by one of the aforementioned battery technologies. We remain convinced that mobile energy storage is likely to be a booming industry in the coming decades but the best approach may be to consider a wide range of technologies that can deliver mobile energy storage.

If the electric vehicle market rises to 140m cars by 2035, then this equates to around one third of total copper demand According to BHP Billiton (www.bhp.com 31st October 2017). The upgrading of the electricity grid infrastructure will require much more infrastructure spend, likely to further increase copper demand.

James Butterfill, Head of Research & Investment Strategy at ETF Securities

James Butterfill joined ETF Securities as Head of Research & Investment Strategy in 2015. James is responsible for leading the strategic direction of the global research team, ensuring that clients receive up-to-date, expert insight into global macroeconomic and asset class specific developments.

James has a wealth of experience in strategy, economics and asset allocation gained at HSBC and most recently in his role as Multi- Asset Fund Manager and Global Equity Strategist at Coutts. James holds a Bachelor of Engineering from the University of Exeter and an MSc in Geophysics from Keele University.

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REX Shares lanserar tre nya covered call ETFer i Europa

Publicerad

8 timmar sedan

den

2 juli, 2025

Redaktionen

REX Shares har inlett ett samarbete med HANetf för att lansera tre nya covered call ETFer i Europa.

REX Shares har inlett ett samarbete med HANetf för att lansera tre nya covered call ETFer i Europa.
De tre ETFerna är REX Tech Innovation Income & Growth UCITS ETF (ticker: FEGI), REX Tech Innovation Premium Income UCITS ETF (ticker: FEPI) och REX Crypto Equity Income & Growth UCITS ETF (ticker: CEGI).
Enligt en nyligen genomförd oberoende undersökning uttryckte fondväljare i hela Europa den största efterfrågan på strategier med covered call och räntebärande tillgångar inom hela spektrumet av aktiva ETFer.
ETFerna är noterade på London Stock Exchange, Xetra och Borsa Italiana.

HANetf, Europas första och enda oberoende white-label UCITS ETF och ETC-plattform, och ledande leverantör av digitala tillgångs-ETP:er, är glada att kunna tillkännage lanseringen av tre aktivt förvaltade covered call-ETFer från REX Shares.

REX Tech Innovation Income & Growth UCITS ETF

ISIN: IE000OBK3UE0

TER: 0,65 %

Börs	Bloomberg Ticker	RIC	SEDOL	Valuta
London Stock Exchange	FEGI LN	FEGI.L	BSD55C4	USD
London Stock Exchange	FEPD LN	FEPD.L	BSD55D5	GBP
Xetra	ASWL GY	ASWL.DE	BVBMG47	EUR
Borsa Italiana	FEGI IM	FEGI.MI	BVBMJ15	EUR

REX Tech Innovation Premium Income UCITS ETF

ISIN: IE000HF69TA9

TER: 0,65 %

Börs		Bloomberg Ticker		RIC		SEDOL		Valuta
London Stock Exchange	FEPI LN		FEPI.L		BSD5591		USD
London Stock Exchange	FEPG LN		FEPG.L		BSD55B3		GBP
Xetra	ASWK GY		ASWK.DE		BVBMG03		EUR
Borsa Italiana	FEPI IM		FEPI.MI		BVBMG36		EUR

REX Crypto Equity Income & Growth UCITS ETF

ISIN: IE0008BA4TY1

TER: 0,65 %

Börs		Bloomberg Ticker		RIC		SEDOL		Valuta
London Stock Exchange	CEGI LN		CEGI.L		BSD55F7		USD
London Stock Exchange	CEPG LN		CEPG.L		BSD55G8		GBP
Xetra	ASWM GY		ASWM.DE		BVBMG14		EUR
Borsa Italiana	CEGI IM		CEGI.MI		BVBMG25		EUR

Både FEGI och FEPI erbjuder exponering mot 20 ledande amerikansknoterade teknikaktier – inklusive FANG+-aktier – och strävar efter att generera månatliga intäkter genom covered call-strategier. FEGI skriver optioner på cirka 50 % av portföljen och balanserar intäkter och tillväxtpotential, medan FEPI använder en heltäckande strategi där man skriver calls upp till 10 % av kapitalet för att öka avkastningen utan att helt begränsa uppsidan.

Samtidigt fokuserar CEGI på 25 amerikansknoterade företag kopplade till krypto- och blockkedjeekosystemet och använder även en covered call-strategi på ~50 % i syfte att leverera attraktiva månatliga utbetalningar och fånga volatilitetsdrivna intäkter utan att väsentligt begränsa tillväxten.

De tre lanseringarna markerar REX Shares första inträde på den europeiska marknaden. Företaget förvaltar över 5 miljarder dollar i förvaltat kapital (AUM) över sina strategier i USA.

ETFer baserade på covered call och options ser betydande tillväxt i Europa och representerar nu 4,35 miljarder dollar i förvaltat kapital (AUM), efter att ha registrerat över 2,56 miljarder dollar i nettoflöden hittills i år. Enligt en nyligen genomförd oberoende undersökning uttryckte fondväljare i Europa den största efterfrågan på covered call- och räntebärande strategier inom hela spektrumet av aktiva ETFer (publicerat i HANetfs senaste Thematic & Active Review).

HANetf har nu fem covered call-produkter på sin plattform, enligt nedan:

HANetf Covered Call Products	Ticker
REX Tech Innovation Income & Growth UCITS ETF	ASWL
REX Tech Innovation Premium Income UCITS ETF	ASWK
REX Crypto Equity Income & Growth UCITS ETF	ASWM
YieldMax^® Big Tech Option Income UCITS ETF	YYYY
YieldMax^® MSTR Option Income Strategy ETC	M5TY

Kevin Gopaul, CIO på REX Financial, kommenterade: ”Vi är glada över att markera REX inträde på den europeiska marknaden med lanseringen av tre innovativa covered call-ETF:er. Optionsbaserade inkomststrategier har sett en explosionsartad tillväxt över hela världen, och vi har haft turen att spela en ledande roll i den rörelsen. Dessa strategier är utformade för investerare som söker avkastning samtidigt som de förblir fullt investerade i aktier, och vi är stolta över att kunna erbjuda en differentierad, aktivt förvaltad strategi för att generera intäkter från ledande amerikanska teknikledare och kryptorelaterade företag.”

Hector McNeil, medgrundare och VD för HANetf, kommenterade: ”Vi är glada över att samarbeta med REX Shares för att lansera tre nya covered call-ETFer i Europa. Tillgångsslaget har tagit fart i Europa nyligen, men vi tror att det bara har börjat. REX Shares strategi är beprövad i USA, och nu har europeiska investerare en chans att delta.

”Vi har nu 5 covered call-ETFer på HANetf-plattformen och 13 aktiva ETFer. Vi tror att båda dessa områden är redo för betydande tillväxt i Europa, och detta återspeglas i ökningen av förfrågningar vi har fått om att lansera aktiva och optionsbaserade ETFer.

”Vårt mål är alltid att bryta ner inträdesbarriärerna på den europeiska ETF-marknaden och göra det möjligt för kapitalförvaltare från hela världen att lansera sina börshandlade strategier på ett snabbt och kostnadseffektivt sätt. Vårt produktutbud blir alltmer mångsidigt i takt med att vi välkomnar fler partners till plattformen, vilket säkerställer att vi alltid är innovativa och erbjuder relevanta strategier till europeiska investerare.”

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WOEE ETF en aktiv globalfond från iShares

Publicerad

9 timmar sedan

den

2 juli, 2025

Redaktionen

iShares World Equity Enhanced Active UCITS ETF USD (Acc) (WOEE ETF) med ISIN IE000D8XC064, är en aktivt förvaltad ETF.

Denna börshandlade fond investerar minst 70 procent i aktier från utvecklade marknader över hela världen. Upp till 30 procent av tillgångarna kan placeras i private equity-instrument, värdepapper med fast ränta med investment grade-rating och penningmarknadsinstrument. Värdepapper väljs utifrån hållbarhetskriterier och en kvantitativ investeringsmodell.

Den börshandlade fondens TER (total cost ratio) uppgår till 0,30 % p.a. iShares World Equity Enhanced Active UCITS ETF USD (Acc) är den enda ETF som följer iShares World Equity Enhanced Active-index. ETFen replikerar det underliggande indexets prestanda genom fullständig replikering (köper alla indexbeståndsdelar). Utdelningarna i ETFen ackumuleras och återinvesteras.

Denna ETF lanserades den 31 juli 2024 och har sin hemvist i Irland.

Investeringsmål

Fonden förvaltas aktivt och syftar till att uppnå långsiktig kapitaltillväxt på din investering, med hänvisning till MSCI World Index (”Riktmärket”) för avkastning.

Handla WOEE ETF

iShares World Equity Enhanced Active UCITS ETF USD (Acc) (WOEE ETF) är en europeisk börshandlad fond. Denna fond handlas på flera olika börser, till exempel Deutsche Boerse Xetra och London Stock Exchange.

Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, Aktieinvest och Avanza.

Börsnoteringar

Börs	Valuta	Kortnamn
Euronext Amsterdam	USD	WOEE
XETRA	EUR	WOEE
London Stock Exchange	GBP	WOEE

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