L&G Battery Value‑Chain

ETF description

This ETF focuses on companies involved in the battery value chain, which includes the production and recycling of batteries, as well as the raw materials used to make them. This ETF aims to invest in businesses that contribute to this evolving market, encompassing various sectors such as energy storage, battery manufacturing, and materials sourcing.

This ETF may appeal to investors interested in the transition to cleaner energy and the technological advancements in battery technology. It could be particularly suitable for those who believe in the long‑term potential of the electric vehicle market and renewable energy solutions.

Issuer details

Legal & General Investment Management (LGIM) is one of Europe’s largest asset managers and a subsidiary of Legal & General Group plc. With over £1.5 trillion in assets under management as of June 2024. Established in 1836, LGIM has a long history and is known for its strong focus on index investing, providing investors with cost‑effective and diversified exposure to various markets. LGIM is also recognized for its innovative ESG integration across its investment strategies and expertise in liability‑driven investment (LDI) solutions. Notable ETFs include the L&G Global Technology Leaders UCITS ETF and the L&G Cyber Security UCITS ETF, reflecting LGIM’s commitment to providing access to innovative and thematic investment themes. LGIM offers a range of investment solutions and covers various market segments.

Index details

The Index aims to track the performance of a basket of stocks of companies that are providers of certain electro‑chemical energy storage technologies and mining companies that produce metals used to manufacture batteries.

The Index is comprised of companies which are publically traded on various stock exchanges around the world that are either (i) mining companies that produce metals that are primarily used for manufacturing batteries or (ii) companies that develop electro‑chemical energy storage technology (i.e. battery technology) and produce batteries. A ‘battery’ is a device consisting of one or more electro‑chemical cells that are capable of generating electrical energy from chemical reactions. A company is only eligible for inclusion in the Index if (1) it is of a sufficient size (determined by reference to the total market value of the proportion of its shares that are publically traded) and (2) it is sufficiently ‘liquid’ (a measure of how actively its shares are traded on a daily basis).

The universe of companies out of which the Index selection is made is refreshed annually in May. However, the Index is reconstituted semi‑annually in May and November in accordance with the full selection criteria and all companies are equally weighted within the Index. On a monthly basis, the weight of each company is assessed and, if any of them exceeds 15% of the Index, the weights of all companies are adjusted so that they are again equally weighted within the Index.