It is very important to see new products coming to the market place which will allow investors to receive a market exposure to Lithium and Rare Earth Elements. Institutions are not allowed to invest in a lot of junior mining companies due to their size and lack of liquidity, structured products will provide the necessary intermediate to this sector and coming liquidity will provide the fuel for our Second Leg of Lithium and REE bull market.
We are pleased to see the number of Lithium and REE companies we are following here in this Index.
"We have another hint into the recent M&A activity in Lithium space. Talison deal with Salares Lithium confirms real Chinese appetite for Lithium. Now it is time for Lithium Supply - China already controls 97% of Rare Earths market. Lithium output will be increased fivefold in Chinese Lithium province, but the real news is below from Reuters - it is only half of previously expected output and now Chinese companies are on the shopping spree among lithium developers. Who will be at the boardroom table next - only a few lithium brines plays are left without J/V partners and we are following here two of them: International Lithium and Rodinia Lithium. We expect M&A activity in lithium space to be continued during this summer months."
The S-BOX Lithium tracks the performance of the 25 largest listed companies whose main business operations are exploration, mining and/or investing in Lithium. The index is calculated as a total return index in Euro. Commodity Capital AG acts as the index advisor and is responsible for the composition of the selection pool of the eligible companies. The S-BOX Lithium is adjusted semi-annually in June and December. The index members are weighted according to market capitalization. The percentage weighting of the four largest companies is capped at 9 percent, the percentage weighting of all other companies at 4 percent.
Profile Index composition Solactive Realtime Tool
Last update 06.09.2010
Name ISIN Number of stocks Weighting * Stock exchange
Canada Lithium Corp CA1351201035 12.321765 ---
Lithium One Inc CA5368061027 5.984857 ---
TNR Gold Corp CA87260X1096 21.269775 ---
Latin American Minerals Inc CA51827X1015 13.138093 ---
Rodinia Minerals Inc CA77487Q1028 10.163678 ---
First Gold Exploration Inc CA3203771041 14.204116 ---
Pan American Lithium Corp CA69784P1018 6.145028 ---
American Lithium Minerals Inc US0272631021 7.048916 ---
Black Hawk Exploration Inc US09206P1075 10.376724 ---
Salares Lithium Inc CA7940051088 7.362605 ---
Orocobre Ltd AU000000ORE0 3.422806 ---
AVALON RARE METALS INC CA0534701002 5.335557 ---
LITHIUM AMERICAS CORP 7.558748 ---
New World Resource Corp CA6492971081 7.232082 ---
Habanero Resources Inc CA4044471049 16.896436 ---
Sociedad Quimica y Minera de Chile SA US8336351056 0.394574 ---
FMC Corp US3024913036 0.221305 ---
Rockwood Holdings Inc US7744151033 0.532545 ---
Galaxy Resources Ltd AU000000GXY2 6.879004 ---
Western Lithium USA Corp CA95854Q1090 6.347576 ---
GlobeStar Mining Corp CA37958J1021 6.478454 ---
Reed Resources Ltd AU000000RDR5 14.101959 ---
* Index weighting in percent from the last adjustment date.
Structured Solutions calculates index for lithium ETF in the US
The Global X Lithium ETF has been launched at the NYSE Arca. It is the first ETF worldwide which covers the lithium investment topic. Structured Solutions AG has developed the underlying index, the Solactive Global Lithium Index, and also acts as the index calculator. The index includes companies which are active in exploration or mining of lithium or in the production of lithium batteries. At launch, there are 20 companies in the index which are weighted according to their freefloat market capitalization as well as their trading volume. The index is adjusted semi-annually. The Global X Lithium ETF tracks the performance of the index. Sebastian Seifried, Head of Indexing at Structured Solutions, comments: "Lithium as one of the key resources of the future has been hard to access for most investors up to this point. Therefore we are very glad to calculate the Solactive Global Lithium Index as the underlying for the first Lithium ETF worldwide."
Global X Management Company launches four new ETFs linked to Solactive Indices
Global X Funds, a New York-based provider of Exchange Traded Funds (ETFs), recently launched new ETFs on the NYSE Arca which offer investors targeted access to companies that are active in the Lithium space as well as to specific segments of the Brazilian stock market.
The Solactive Global Lithium Index tracks the price movements in shares of companies active in Lithium mining, exploration or a closely related activity and/or production of Lithium batteries. The Global X Lithium ETF is the first ETF globally to offer investors indirect access to this metal.
The Global X Brazil Mid Cap ETF seeks to track the Solactive Brazil Mid Cap Index which includes medium-sized companies based in Brazil. The Global X Brazil Consumer ETF and the Global X Brazil Financials ETF are the first ETFs in the United States allowing an investment in specific sectors of the Brazilian economy. They are designed to replicate the performance of the Solactive Brazil Consumer Index and the Solactive Brazil Financials Index, respectively.
All indices have been developed by Structured Solutions AG which also acts as the index calculator. All four indices apply screens for free float market capitalization and trading volume as well and are adjusted semi-annually. With the Global X Lithium ETF, investors can play the investment case surrounding the possible development of hybrid electric cars, where Lithium batteries are used almost exclusively. For the Lithium Index, Structured Solutions AG cooperates with Switzerland based Commodity Capital AG which is responsible for the selection of the relevant companies.
The Solactive Brazil Mid Cap Index for example employs a specific market capitalization based methodology to select companies of the mid cap segment of the Brazilian stock market. In order to be included in one of the new Brazil sector indices a company must be based in Brazil and active in the consumer or financial sector, respectively, or producing the majority of its revenues in the country.
Bruno del Ama, CEO of Global X Funds comments: “The Brazilian economy has developed very rapidly in recent years. Market commentators often attribute this success story to the significant commodity exposure of the Brazilian economy which is also reflected in the fact that the commodity sector is weighted heavily in most investment products covering Brazil. The Global X Brazil Mid Cap ETF is much more diversified in terms of sector allocation.”
Sebastian Seifried, Head of Indexing at Structured Solutions AG adds: “We strive to develop index concepts that offer value to investors and create new investment opportunities. Whereas Brazil is one of the most dynamic emerging markets at this point, Lithium´s important role in many innovative technologies makes it a highly interesting theme in the commodity space. The Global X ETFs allow targeted access to both topics.”
All indices are calculated in real-time on each trading day between 09:00am and 10:30pm (CET) and are published on the website www.solactive.com as well as through data vendors."