First Trust S-Network Electric & Future Vehicle Ecosystem ETF (NASDAQ: CARZ)

Ultime notizie per First Trust S-Network Electric & Future Vehicle Ecosystem ETF (NASDAQ:CARZ)

First Trust S-Network Electric & Future Vehicle Ecosystem ETF

First Trust S-Network Future Vehicles & Technology ETF

Technology

Consumer Cyclical

Industrials

Basic Materials

Other

Communication Services

The fund will normally invest at least 90% of its net assets (including investment borrowings) in the common stocks and depositary receipts that comprise the index. The index is designed to track the performance of the largest and most liquid companies engaged in the manufacturing of automobiles. The fund is non-diversified.

Apple Inc

Microsoft Corp

Alphabet Inc., Class A

Tesla, Inc.

Samsung Electronics Company Ltd

Taiwan Semiconductor - Adr

Qualcomm Inc.

Nvidia Corp.

Advanced Micro Devices Inc.

Texas Instruments Inc

Toyota Motor Corp.

KoBold Metals, the mining startup backed by Bill Gates and Jeff Bezos, is ready for a major expansion into the Democratic Republic of Congo (DRC) – a country with a <a target="_blank" href="https://www.benzinga.com/markets/commodities" rel="noreferrer noopener">vast commodity wealth</a>, including cobalt, copper, and lithium.
"KoBold is committed to significant investments in the DRC, potentially amounting to billions of dollars. Our goal is to harness the country's rich mineral resources responsibly and sustainably," Benjamin Katabuka, the firm's newly appointed Director-General in the DRC, <a target="_blank" href="https://www.ft.com/content/3c5859db-2a46-4111-b823-865dc284c33b" rel="noreferrer noopener">said</a> to The Financial Times.
The United States has recently intensified its interest in securing African mineral resources to counter China's dominance. Massad Boulos, President Donald Trump's Senior Adviser for Africa, confirmed that the U.S. and the DRC have "charted a path forward" for a minerals partnership that could enhance American access to lithium, cobalt, and copper—resources critical for electric vehicles and energy storage.
KoBold Metals has shown keen interest in DRC's <a target="_blank" href="https://www.benzinga.com/25/03/44456007/gates-bezos-backed-startup-makes-move-for-dr-congos-lithium" rel="noreferrer noopener">lithium deposits</a>, which could become one of the largest lithium mines globally if legal disputes are resolved. CEO Gerard Barron presented the goal to "responsibly and economically deliver the world's first commercial-scale nodule project."
However, the DRC remains a difficult jurisdiction. Security concerns, such as the ongoing conflict with the M23 rebels, disrupt mining operations, particularly in the eastern regions. Per recent reports, Blackwater founder Erik Prince might provide an <a target="_blank" href="https://www.benzinga.com/news/global/25/04/44885311/blackwater-founder-reaches-a-security-deal-with-dr-congo" rel="noreferrer noopener">initial security deployment</a> in the Katanga province.
Infrastructure challenges, including unreliable energy supplies, further complicate investment. "It's difficult to do business in the DRC," Katabuka acknowledged.
The DRC is the world's leading cobalt supplier and a major copper producer, two elements indispensable for EV batteries and green technologies. Yet, the country has faced criticism for human rights abuses and environmental concerns regarding its <a target="_blank" href="https://www.npr.org/sections/goatsandsoda/2023/02/01/1152893248/red-cobalt-congo-drc-mining-siddharth-kara" rel="noreferrer noopener">mining practices</a>, which NPR dubbed "modern-day slavery."
KoBold's Machine Prospector uses advanced data modeling and AI to systematically analyze geochemical, geophysical, and geological datasets, allowing faster, <a target="_blank" href="https://www.koboldmetals.com/news/robust-and-ethical-cobalt-supply-for-the-electric-vehicle-revolution/" rel="noreferrer noopener">more accurate identification</a> of mineral prospects without relying solely on manual methods. This approach could enable KoBold to develop new, ethical sources of cobalt that meet rising demand.
So far, the firm has raised over $1 billion, with the latest $537 million round with backers such as Breakthrough Energy Ventures, Equinor, Mitsubishi Corporation, and Standard Investments. The firm's leadership, including founder Josh Goldman, has hinted that KoBold may eventually go public, but for now, it remains privately backed and focused on long-term strategic mineral exploration.
Read Next:
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<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/04/45021300/golds-glitter-fades-what-etf-investors-need-to-know-now" target="_blank" rel="noreferrer noopener">Gold's Glitter Fades? What ETF Investors Need To Know Now</a></li>
</ul>

News

Emerging Markets

Financing

Commodities

Markets

BATT

CARZ

COPX

CPER

Fidelity Electric Vehicles and Future Transportation ETF

FDRV

JJMTF

KoBold Metals Prepares Billions To Develop Ethical Sources Of Critical Metals In DR Congo

As President Donald Trump&#8216;s auto tariffs pulled the markets down on Wednesday, he shrugged off the selloff worries, saying that markets can &#8220;take care of itself&#8221;.
What Happened: During the press briefing on Wednesday, Trump was asked about the market fall after a three-day advance as the newly introduced auto tariffs stoked another round of decline in the equities.
Responding to the question, Trump said that he wants to &#8220;see jobs&#8221; and he wasn&#8217;t concerned about the stock market.
&#8220;That can take care of itself in one day, two days, or one week,&#8221; he added.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Reporter: The NASDAQ was down 2% at close. S&amp;P 500 down 1%. President Trump: Is that today? Reporter: Yes, sir. President Trump: I didn&#39;t see that&#8230; that can take care of itself. <a href="https://t.co/ws2Ww08Mgx">pic.twitter.com/ws2Ww08Mgx</a>
&mdash; unusual_whales (@unusual_whales) <a href="https://twitter.com/unusual_whales/status/1905018483018170710?ref_src=twsrc%5Etfw">March 26, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
After Wednesday, the Nasdaq 100 slipped into the correction zone again as it fell 10.38% from its 52-week high, while the S&amp;P 500 index was 7.08% lower from the record levels. Dow Jones, on the other hand, was 5.81% down from its 52-week high.
Trending:
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<li>This startup is on the brink of disrupting a $654 billion industry — <a href="https://benzingapartners.go2cloud.org/aff_c?offer_id=558&amp;aff_id=1">invest in it for under $10 before it's too late</a>.</li>
</ul>
Why It Matters: New auto tariffs starting April 3 aim to generate $100 billion annually and spur U.S. manufacturing, reducing reliance on global supply chains, the Associated Press <a href="https://apnews.com/article/autos-tariffs-trump-tax-imports-ford-gm-e53823ef7bbb7b3c46d11eca90aaa638?user_email=97d05b29432d778bbb1ffb8f16f2769451bf1d6125981f71ceccbe18ec8d01d8&amp;utm_medium=APNews_Alerts&amp;utm_source=Sailthru_AP&amp;utm_campaign=NewsAlert_Mar26_2025_05:37PM&amp;utm_term=AP%20News%20Alerts#">reported</a>. 
<a href="https://www.benzinga.com/25/03/44506345/trump-imposes-25-tariffs-on-auto-imports-says-this-will-continue-to-spur-growth-canada-eu-slam-the-move">President Trump stated</a>, &#8220;This will continue to spur growth.&#8221; However, American automakers using global components may face higher costs and lower sales. The administration counters that automakers have excess capacity for domestic production and were aware of potential tariffs. Under USMCA, the 25% tariff affects only non-U.S. content in autos and parts from Mexico and Canada. 
Earlier this month, President Donald Trump did not rule out the likelihood of a recession and said the economy was in a "period of transition."
Here is the list of automotive ETFs to keep an eye on.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Automobile ETFs</td>
<td>YTD Performance</td>
<td>One Year Performance</td>
</tr>
<tr>
<td>First Trust S-Network Future Vehicles &amp; Tech ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>)</td>
<td>-0.39%</td>
<td>-2.56%</td>
</tr>
<tr>
<td>abrdn Physical Palladium Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PALL#NYSE">PALL</a>)</td>
<td>5.97%</td>
<td>-2.60%</td>
</tr>
<tr>
<td>Global X Autonomous &amp; Electric Vehicles ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRIV#NASDAQ">DRIV</a>)</td>
<td>-2.43%</td>
<td>-8.84%</td>
</tr>
<tr>
<td>Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>)</td>
<td>0.47%</td>
<td>-11.21%</td>
</tr>
<tr>
<td>KraneShares Electric Vehicles and Future Mobility (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KARS#NYSE">KARS</a>)</td>
<td>5.82%</td>
<td>-1.68%</td>
</tr>
</tbody>
</table>
</figure>
Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were mixed in premarket on Thursday. The SPY advanced 0.039% to $568.81, and the QQQ fell 0.11% to $483.86, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
On Wednesday, SPY declined 1.19% to $568.59, and the QQQ dropped 1.84% to $484.38, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data on Wednesday.
Read Next:
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<li>Have $200K saved? <a href="https://moneypickle.go2cloud.org/aff_c?offer_id=14&amp;aff_id=1002">Here's how to turn it into lasting wealth</a>.</li>
<li><a href="https://www.benzinga.com/tech/25/03/44487688/signal-touts-gold-standard-encryption-as-trump-administration-leak-spotlight-intensifies-our-code-is-regularly-scrutinized" target="_blank" rel="noreferrer noopener">This platform is reshaping how you invest in private companies — </a><a href="https://benzingapartners.go2cloud.org/aff_c?offer_id=561&amp;aff_id=1">and you can be a part of it for $0.18 per share</a>.</li>
</ul>
Photo courtesy: Shutterstock

Equities

Government

Market Summary

Futures

Economics

ETFs

DRIV

KARS

PALL

Trump Reacts To Selloff Following Auto Tariffs: 'That Can Take Care Of Itself In One Day, Two Days, Or One Week'

KoBold Metals, a startup backed by billionaires Bill Gates and Jeff Bezos, has approached the Democratic Republic of Congo's (DRC) government with an offer to develop one of the world's largest hard rock <a target="_blank" href="https://www.benzinga.com/topic/lithium" rel="noreferrer noopener">lithium mines</a>.
The mining startup looks to take over the disputed mining license for the Roche Dure deposit, taking advantage of the two governments' discussions about a potential <a target="_blank" href="https://www.benzinga.com/25/03/44216408/dr-congo-explores-a-minerals-for-security-deal-with-the-us" rel="noreferrer noopener">minerals-for-security partnership</a>.
KoBold's bid could resolve an ongoing dispute between Australia's AVZ Minerals and China's Zijin Mining Group. AVZ, which previously controlled the lithium project, lost its rights in 2023 when the government split the permit, handing part of it to Zijin. Per Bloomberg's <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-03-21/kobold-makes-offer-for-congo-lithium-as-country-courts-us" rel="noreferrer noopener">report</a>, KoBold's proposal involves compensating AVZ and acquiring the remaining stake while allowing Zijin to maintain control over the northern section of the deposit.
Despite an 80% decline in lithium prices since a peak in 2022, Zijin has actively expanded its operations, acting greedy when others are fearful in anticipation of a future demand and price rebound.
Meanwhile, KoBold staked its claim as a unique company in this industry, using a proprietary AI-powered technology that analyzes geological data more accurately than traditional exploration methods.
This tech-driven approach has attracted over $400 million in funding from high-profile investors, including Breakthrough Energy Ventures (founded by Gates) and Bezos' Bezos Expeditions.
Arguably, the company's best success has been in neighboring Zambia, where it found the Mingomba asset – possibly the <a target="_blank" href="https://www.benzinga.com/news/24/02/36940360/kobold-metals-announces-historic-copper-discovery-in-zambia" rel="noreferrer noopener">best copper asset in the country</a>. Experts believe that once operational in the early 2030s, it could rival Zijin's Kamoa-Kakula mine in DRC, which produced almost 400,000 tons of copper in 2023.
While DRC is the world's largest producer of cobalt, lithium extraction in the country has lagged behind other regions, such as Australia and South America.
Roche Dure could change the balance, placing the country on the map of major battery-grade lithium producers, as KoBold's interest aligns with the effort to bring this region closer under U.S. influence and pacify the unrest that threatens mineral production.
Still, extraction of hard rock lithium requires extensive open-pit excavation. This traditional method generates significantly more waste rock, consumes vast amounts of water, and uses toxic chemicals in processing, posing greater risks to local ecosystems and communities. Yet, in anticipation of lithium demand, companies are increasingly looking for large-scale projects.
KoBold Metals remains a private company, but CEO Josh Goldman told CNBC a year ago that it plans to go public within three to four years.
Read Next:
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<li><a href="https://www.benzinga.com/government/regulations/25/03/44442925/alaska-drilling-restrictions-set-to-be-lifted-as-energy-projects-advance" target="_blank" rel="noreferrer noopener">Alaska Drilling Restrictions Set To Be Lifted As Energy Projects Advance</a></li>
</ul>
Photo via Shutterstock

Asset Sales

Global

FEAM

Hycroft Mining Holding Corporation - Class A Common Stock

HYMC

IDRV

LITM

LTHM

Gates And Bezos-Backed Startup Makes Move For DR Congo's Lithium

The United States is considering a potential partnership with the Democratic Republic of Congo (DRC) to secure access to <a target="_blank" href="https://www.benzinga.com/markets/commodities" rel="noreferrer noopener">critical minerals</a>, following discussions initiated by a senior Congolese official.
According <a target="_blank" href="https://www.ft.com/content/3f638e29-4790-4a10-b5b7-a79f9ef55491" rel="noreferrer noopener">to</a> the Financial Times, the DRC proposed a minerals-for-security deal, offering valuable resources for military support to address ongoing conflict in the region, particularly with the M23 rebel group who seized control of eastern parts of the North Kivu province.
President Felix Tshisekedi recently hinted at the deal in an interview for the New York Times, while a State Department spokesperson confirmed the situation.
"The DRC is endowed with a significant share of the world's critical minerals required for advanced technologies. The United States is open to discussing partnerships in this sector that align with the Trump administration's America First agenda," they said.
The DRC has significant mineral resources, including cobalt, lithium, copper, and tantalum. It is a global leader in cobalt production, supplying over 70% of the metal's production. Cobalt is essential for electric vehicle batteries and renewable energy technologies.
Still, its status has been problematic, as declining prices forced foreign operators like the Chinese miner MMG to <a target="_blank" href="https://www.benzinga.com/news/global/25/03/44168899/mmg-pauses-cobalt-production-in-congo-as-price-hits-historic-lows" rel="noreferrer noopener">pause production</a>. Meanwhile, the government implemented a four-month export ban to stabilize the oversupplied market.
On top of illegal mining and smuggling, escalating armed conflicts are likely the main catalyst for ongoing talks with Washington. The M23 rebel group, allegedly backed by neighboring Rwanda, has seized significant territory in the eastern part of the country, threatening mineral-rich territory.
Since the conflict has also drawn in neighboring Burundi and Uganda, the situation risks escalating into a full-scale regional conflict.
While a deal with the U.S. would stabilize the region, in exchange, the U.S. would gain access to critical minerals and reduce reliance on Chinese-dominated supply chains.
China controls most of the DRC's mining sector through the state-owned MMG. Washington could seize this opportunity to reduce Beijing's influence while securing resources for its industrial needs.
Yet, a deal between Washington and Kinhasa is a tall order. The political climate in Kinshasa is volatile, and past foreign mining agreements in the DRC have faced criticism over transparency issues.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/25/03/44188315/germany-could-meet-its-lithium-needs-from-domestic-sources-study-says" target="_blank" rel="noreferrer noopener">Germany Could Meet Its Lithium Needs From Domestic Sources, Study Says</a></li>
</ul>
Photo via Shutterstock

Politics

DR Congo Explores Minerals-For-Security Deal With The US

A new study said Germany could have enough lithium to meet its long-term domestic needs. Sourcing domestic <a target="_blank" href="https://www.benzinga.com/markets/commodities" rel="noreferrer noopener">commodities</a> would help its weakened automotive industry reduce reliance on imports – a welcome development in a deglobalized environment.
The study by the Federal Institute for Geosciences and Natural Resources and the Fraunhofer IEG Institute notes the potential of lithium extraction from deep underground waters.
Germany's reliance on lithium imports is notable. In 2023, the country imported €23.7 billion ($25.72 billion) worth of batteries, of which lithium-ion batteries accounted for 86%, according to the trade group ZVEI. Meanwhile, the German Raw Materials Agency estimates that, by 2030, the domestic demand will reach 170,000 metric tons of lithium annually.
According to Reuters, the study estimates that Germany holds up to 26.51 million metric tons of lithium, particularly in the North German Basin and the Central Thuringian Basin.
Much of this lithium could be extracted as a byproduct of geothermal energy production, offering a dual benefit of sustainable energy and critical mineral supply. Major corporations, including ExxonMobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>), have shown interest, with Exxon's subsidiary Esso Deutschland securing four exploration licenses in Lower Saxony.
Katharina Alms, the research leader at Fraunhofer IEG, told Reuters the development shows that surprisingly high lithium resources might be dormant underground.
Still, she acknowledged that variations in concentration levels and technical difficulties associated with extraction with low-permeability rock formations pose difficulties.
However, lithium dissolved in brine allows for direct lithium extraction (DLE). This method is more environmentally friendly than traditional evaporation ponds in places like Chile and Argentina, which require vast water and land.
Those necessities put one of the largest global greenfield lithium projects on hold, as Serbia's Jadar project contains lithium in mineral form. Rio Tinto's plans for pursuing traditional extraction methods faced protests over <a target="_blank" href="https://www.benzinga.com/government/24/10/41289306/serbian-parliament-doesnt-pass-lithium-ban-keeps-rio-tintos-major-project-alive" rel="noreferrer noopener">fears of ecological damage</a> despite assurances of compliance with environmental regulations.
Yet, the DLE process reduces waste and speeds up lithium extraction, making it a more viable long-term solution that is more likely to pass Germany's regulatory hurdles, which, according to the OECD's analysis, rank among<a target="_blank" href="https://www.oecd.org/content/dam/oecd/en/topics/policy-sub-issues/economic-policies-to-foster-green-growth/how-stringent-are-environmental-policies.pdf" rel="noreferrer noopener"> the most stringent</a> in the developed world.
Read Next:
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<li><a href="https://www.benzinga.com/25/03/44104459/toronto-risks-its-mining-hub-status-as-bureaucracy-and-geopolitics-take-toll" target="_blank" rel="noreferrer noopener">Toronto Risks Its Mining Hub Status As Bureaucracy And Geopolitics Take Toll</a></li>
</ul>
Photo via Shutterstock

Large Cap

Eurozone

Germany Could Meet Its Lithium Needs From Domestic Sources, Study Says

President Donald Trump's one-month exemption on auto tariffs for Mexico and Canada sent ripples <a href="https://www.benzinga.com/25/03/44149833/trump-delays-ford-gm-stellantis-from-from-tariffs-on-mexico-canada-for-one-month">through the sector</a>. 
While the broader market rallied on the news, auto stocks lifted the ETFs that have significant exposure to the industry. However, this exemption is temporary. With Trump's broader tariff plan set to take effect soon, investors are closely watching how these policy moves will shape the future of <a href="https://www.benzinga.com/etfs">auto-related ETFs</a>.
<h2 class="wp-block-heading">ETFs In Focus The Tariff Delay</h2>
The exemption news <a href="https://www.investopedia.com/big-three-automaker-stocks-gain-on-potential-trump-tariff-relief-tax-break-11691127">boosted</a> shares of major automakers: 
<ul>
<li>Ford (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), 5.3%, </li>
<li>Stellantis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>), 9.1%,</li>
<li>General Motors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), 7.7%.</li>
</ul>
Naturally, ETFs carrying these stocks saw strong movement as well. Here are three auto-focused ETFs that reacted positively to the announcement:
<ul>
<li>Global X Autonomous &amp; Electric Vehicles ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRIV#NASDAQ">DRIV</a>) closed up 3.92%; This ETF holds a diversified basket of stocks engaged in the electric and autonomous vehicle space, including Ford and General Motors. With GM pushing deeper into EV technology and Ford ramping up production, DRIV saw an uptick following the <a href="https://www.benzinga.com/topic/tariffs">tariff delay</a>.</li>
</ul>
<ul>
<li>First Trust Nasdaq Global Auto Index Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>) was up 2.86% at closing; This ETF, one of the most direct plays on the global auto industry, benefited from the surge in Stellantis, GM, and Ford. The ETF's holdings span traditional and electric automakers, making it a go-to choice for investors looking for broad auto sector exposure.</li>
</ul>
<ul>
<li>SPDR S&amp;P Kensho Smart Mobility ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAIL#NYSE">HAIL</a>) up 3.76% at closing; HAIL focuses on companies involved in innovative transportation, including automakers and auto tech firms. With a portfolio that includes GM and Ford, it saw a bump from the tariff extension and will likely remain volatile as trade policies evolve.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/news/25/03/44122159/warren-buffett-calls-tariffs-an-act-of-war-warns-they-function-as-a-tax-on-goods-amid-market-turmoil">Warren Buffett Calls Tariffs &#8216;An Act Of War,&#8217; Warns They Function As A Tax On Goods Amid Market Turmoil</a>
<h2 class="wp-block-heading">Breaking Down Trump's Tariff Plan</h2>
The White House's <a href="https://edition.cnn.com/2025/03/05/business/tariffs-autos-mexico-canada-paused/index.html">announcement</a>, delivered by Press Secretary Karoline Leavitt, confirmed that the administration is granting a temporary exemption for cars coming through the USMCA trade agreement, as reported by CNN. Trump reasoned that it was to give major U.S. automakers time to shift production stateside, aligning with his broader "America First" economic strategy.
While the exemption is good news for now, reciprocal tariffs are still slated to take effect on April 2, said Leavitt. Trump has made it clear that he wants automakers to start investing in U.S. production rather than relying on imports. The uncertainty surrounding these upcoming tariffs has left many businesses in limbo, with some fearing that increased costs could ripple through supply chains and impact overall profitability.
Meanwhile, Canada isn't pleased. Ontario Premier Doug Ford and Canadian Prime Minister Justin Trudeau have taken a firm stance against any auto tariffs, arguing that trade between the two countries should remain unhindered. Despite this pushback, Trump remains unwavering in his tariff plans, signaling that more trade battles could be on the horizon.
<h2 class="wp-block-heading">What's Next For Auto ETFs?</h2>
With Trump's broader reciprocal tariff policy looming, auto-focused ETFs remain in a delicate position. A full-fledged trade conflict could disrupt supply chains and drive up costs for automakers, negatively impacting the ETFs that hold them. However, if the administration softens its stance or extends the exemption further, these ETFs could continue to see gains.
Investors should stay tuned as the situation develops. For now, the one-month reprieve offers a temporary tailwind.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44144570/3-cybersecurity-etfs-in-focus-amid-reports-of-us-cyber-operations-suspension">3 Cybersecurity ETFs in Focus Amid Reports of US Cyber Operations Suspension</a></li>
</ul>
Image: Shutterstock

Sector ETFs

HAIL

STLA

Auto ETFs Surge On Trump's Tariff Reprieve, But Uncertainty Looms

Investors are scrambling to assess the potential fallout of yet <a href="https://www.benzinga.com/topic/tariffs">another tectonic trade decision</a>. 
What Happened: President Donald Trump plans to impose a 25% levy on <a href="https://www.benzinga.com/25/02/43805852/trump-shakes-global-trade-with-25-auto-chip-and-pharma-tariffs-announcement-asian-stocks-pare-their-five-day-rally">auto, semiconductor, and pharmaceutical imports</a>,
This move could have far-reaching consequences for <a href="https://www.benzinga.com/etfs">ETFs with heavy exposure to these sectors</a>, particularly those tracking automakers, chipmakers, and biotech firms.
Trump's protectionist stance triggered an immediate market response across the global markets. Asian stocks retreated after a five-day rally, with the MSCI Asia Pacific Index slipping, particularly affecting Japanese automakers like Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>).
Also Read: <a href="https://www.benzinga.com/news/global/25/02/43795579/warren-buffett-unfazed-by-trumps-tariff-threats-oracle-of-omaha-bets-on-mexico-beer">Warren Buffett Unfazed By Trump&#8217;s Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer</a>
Automakers: The U.S. imported around 8 million passenger cars and light trucks last year, comprising 50% of total vehicle sales, according to a report by Wall Street Journal. A 25% tariff would increase vehicle prices, impact supply chains, and hurt companies dependent on overseas manufacturing. 
Here are a few ETFs likely to take a hit:
<ul>
<li>Global X Autonomous &amp; Electric Vehicles ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DRIV#NASDAQ">DRIV</a>): Fairly exposed to Toyota, Tesla (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Ford (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), this fund could face turbulence as trade tensions mount.</li>
</ul>
<ul>
<li>First Trust NASDAQ Global Auto Index Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>): Tracks major global automakers, including BMW, Honda, and General Motors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), which rely on imported parts. The ETF also has significant exposure to Toyota and Tesla and allocates 46% of its assets to overseas stocks. That places it in a precarious position amid escalating tariff situations.</li>
</ul>
Chips: Trump also declared that sectoral tariffs on semiconductors would start at "25% or higher", escalating further over time. This comes as the U.S. considers a 100% tariff on Taiwanese semiconductors, an industry heavily reliant on TSMC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
<ul>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) – With Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) among its top holdings, this fund is exposed to volatility stemming from supply chain disruptions.</li>
</ul>
<ul>
<li>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) – Heavily weighted towards TSMC, Intel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), and Qualcomm (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), making it vulnerable to any tariff escalation.</li>
</ul>
Pharma: The pharmaceutical sector is also caught in the crosshairs, with Trump hinting at escalating tariffs beyond 25% over the year. This could upend drug pricing, R&amp;D costs, and supply chain dynamics for major biopharma companies.
<ul>
<li>iShares U.S. Pharmaceuticals ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHE#NYSE">IHE</a>): Tracks major drugmakers like Pfizer (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>), Merck (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>), and Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>), all of which could see higher costs.</li>
</ul>
<ul>
<li>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>): While biotech firms often have global R&amp;D operations, increased tariffs could disrupt access to imported drug components.</li>
</ul>
Why It Matters: Trump has long voiced concerns over U.S. automotive exports being treated unfairly abroad. In his first term, he threatened a similar 25% car tariff but ultimately backed down.
For ETF investors, volatility is back on the table. Those holding funds exposed to autos, chips, and pharmaceuticals must brace for a bumpy ride. While Trump believes the move will bring manufacturing back home, the short-term pain could be severe.
The Wall Street Journal reported that U.S. companies may receive a phase-in period, with tariffs increasing over the course of the year.
What's Next: Markets will be watching closely as April 2 (when auto tariffs are expected to kick in) approaches. Any delays or modifications to the tariff plan could shift investor sentiment. 
For now, ETF traders should keep an eye on sectoral rotation, hedge exposure where necessary, and prepare for the potential impact of another round of trade wars.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/02/43794873/vanguard-overtakes-state-street-as-top-etf-provider-3-funds-in-focus">Vanguard Overtakes State Street As Top ETF Provider: 3 Funds In Focus</a></li>
</ul>
Photo: Shutterstock

Broad U.S. Equity ETFs

AAPL

AVGO

iShares Dow Jones US Pharmaceuticals Index Fund

INTC

NVDA

QCOM

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

TSLA

Trade War Redux: These ETFs Due For Bumpy Ride Thanks To Trump Tariffs On Auto, Pharma, Chip Imports

President Donald Trump&#39;s decision to impose an additional 10% tariff on Chinese imports is expected to have a limited impact on U.S. vehicle imports but could significantly affect auto parts, potentially raising vehicle prices for consumers.
According to the U.S. International Trade Commission, the U.S. imports between $15.4 billion and $17.5 billion worth of transportation goods from China annually, <a href="https://www.cnbc.com/2025/02/05/trump-china-tariffs-ford-gm-vehicles.html" target="_blank">as quoted on CNBC</a>. This includes approximately $9 billion to $10 billion in auto parts and accessories for vehicles, tractors, and other special-purpose vehicles.
<h2>Impact on U.S. Automakers</h2>
The biggest impact will be on two major U.S. automakers &mdash; Ford (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>) and General Motors GM &mdash; whose China-made models account for most of the affected vehicle imports. The Ford Lincoln Nautilus and GM Buick Envision comprised 95% of the 88,515 China-made vehicles sold in the U.S. last year.
Other carmakers such as Volvo, which is owned by China&#39;s Geely and its electric vehicle spin-off Polestar, import far fewer vehicles to the U.S. They&#39;ve also adjusted production plans to reduce the number of vehicles being imported from China. This shift has been influenced by the Biden administration&#39;s 100% tariff on China-made electric vehicles imposed last year.
China-made vehicles represent only 0.6% of the 16 million new cars sold in the U.S. in 2024 &mdash; comparable to imports from the UK, Sweden, and Slovakia. In contrast, Canada and Mexico accounted for 23.4% of U.S. vehicle sales, making tariffs on these countries a much larger potential concern for the industry.
<h2>Effect on the Auto Parts and EV Supply Chain</h2>
While vehicle imports from China are minimal, auto parts imports are substantial, ranging from $15 billion to $20 billion per year, according to the U.S. International Trade Commission. China also plays a crucial role in the battery and energy storage supply chain, particularly in lithium iron phosphate (LFP) batteries, which are widely used in utility-scale energy storage.
It remains unclear how much the new tariffs will impact EV batteries and raw materials. However, many electrified vehicles in the United States rely on Chinese components. According to the National Highway Traffic Safety Administration, some models incorporating significant Chinese parts.
They include the Genesis G80 EV (25%); Hyundai Kona EV (50%) and Hyundai Ioniq 5 N (30%); Kia EV9 (35%) and Niro Electric (25%); Nissan Ariya EV (40%); Toyota bZ4x EV (20%) and RAV4 PHEV (20%); and Volkswagen ID Buzz EV (25%).
<h2>Impact on Vehicle Pricing and Sales</h2>
Automakers need to decide whether to pass the increased costs onto consumers, change their supply chains, or absorb the expenses. If companies raise prices, it could negatively impact sales, as new vehicle prices remain historically high at around $50,000, according to Cox Automotive, as quoted on CNBC.
If vehicle prices rise further, it could hurt U.S. new car sales, which S&amp;P Global Mobility had previously forecasted to reach 16.2 million units in 2024 before the new tariffs were announced, as quoted on CNBC.
<h2>Auto ETFs in Focus</h2>
The above-mentioned scenario puts focus on exchange-traded funds like First Trust S-Network Future Vehicles &amp; Technology ETF CARZ and First Trust Nasdaq Transportation ETF FTXR.
CARZ in Focus 
The underlying S-Network Electric &amp; Future Vehicle Ecosystem Index constituents are chosen by selecting the eligible Pure-Play companies in descending order of float-adjusted market capitalization until 100 constituents have been selected. The top three holdings include Tesla, Alphabet and Apple. The likes of Toyota, Ferrari, Rivian, Volvo, Honda, Ford, Nissan, Geely, Hyundai also have exposure to this fund. The CARZ ETF charges 70 bps in fees.
FTXR in Focus 
The underlying Nasdaq US Smart Transportation Index is a modified factor weighted index, designed to provide exposure to US companies within the transportation industry. Tesla (13.32%), General Motors (7.56%) and Ford (6.25%) are some of the fund&#39;s biggest holdings. The ETF charges 60 bps in fees.
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<a href="https://www.zacks.com/">Zacks Investment Research</a>

Trump's Tariffs And Their Impact On Auto ETFs

Hedge funds have always been closely watched for cues on investment opportunities. Although their strategies can be complex, understanding the trends they're bullish on can offer important insights for retail investors. 
Siddharth Singhai, CIO of value-based global hedge fund IronHold Capital, recently shared his perspective on sectors worth watching, and how <a href="https://www.benzinga.com/etfs">ETFs can help investors</a> capitalize on these themes. 
From automobiles and homebuilding to mining and AI, here are some ETFs based on his insights:
<h1 class="wp-block-heading">Automobile Industry On Third Gear</h1>
One area drawing attention is the U.S. auto industry. With protectionist policies likely to intensify under the Trump administration, automakers such as General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), and Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) stand to benefit significantly, according to Singhai. 
Possible tariffs on Chinese electric vehicles could set the playing field for these companies, making the U.S. auto sector one to keep a close eye on. 
&#8220;We do anticipate a clear protectionism policy in place for U.S. auto, specifically the big three: General Motors, Ford and Stellantis. Simply because if the tariffs were not put in place against Chinese EVs, U.S. automakers would be at about a 30% to 40% cost disadvantage, which would essentially mean the end of U.S. auto as we know it,&#8221; said Singhai.
However, as a word of caution, he said that one should be wary of auto companies that might face trouble in the face of EV revolution. 
&#8220;We believe U.S. autos and U.S. auto parts suppliers, who have been hit badly due to the excess inventories prevailing in the U.S. auto industry in general, could be a good hunting ground, potentially. Although investors should be focused on auto suppliers that are probably not going to get disrupted by the EV transition,&#8221; Singhai said.
For investors, ETFs like the First Trust S-Network Future Vehicles &amp; Tech (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>) offer exposure to the expected surge in domestic automotive manufacturing. The ETF has an expense ratio of 0.7% and among its holdings are Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Ford, General Motors and Stellantis.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43236579/chinas-deepseek-ai-rattles-tech-stocks">China&#8217;s DeepSeek AI Rattles Tech Stocks, Analyst Ives Says Market Plunge &#8216;Golden Buying Opportunity&#8217;</a>
<h1 class="wp-block-heading">Home Building Industry In Focus</h1>
Homebuilders are another promising area, according to Singhai. Despite overvaluation concerns in the equity market, the housing sector continues to experience a significant supply-demand imbalance. Years of undersupply following the 2008 financial crisis created the opportunity for select homebuilding companies to thrive.
&#8220;U.S. market is extremely overvalued at the moment, and there are not that many sectors that could be happy hunting grounds for hedge funds or value investors like us. In general, homebuilders, some of them, seem to be still attractively positioned given the great imbalance between supply and demand, mainly because of years of undersupply post-Great Recession in 2008-&#8217;09. So we believe homebuilders, some of them, present very compelling opportunities,&#8221; Singhai noted.
Investors interested in this space might consider ETFs such as the iShares U.S. Home Construction ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITB#BATS">ITB</a>), which focuses on leading players in the sector, such as Builders Firstsource, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLDR#NYSE">BLDR</a>) and Lowes Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LOW#NYSE">LOW</a>). The expense ratio that this ETF carries is 0.39%.
<h1 class="wp-block-heading">Mining — Hidden Gems To Look For</h1>
Mining is another area that stands out. Many companies in this space, especially low-cost producers, are undervalued and largely overlooked by the market. These firms could see strong performance with a rebound in global demand for raw materials.
&#8220;Mining companies also seem to be hit badly and ignored by investors. You could find some really good mining companies that are the lowest cost producers in their respective industries that could prove to be high performers over the next two to three years,&#8221; Singhai noted from his expertise.
ETFs such as the SPDR S&amp;P Metals and Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>) invest in a range of mining companies and could be a good fit for investors looking to capture growth in this area. The ETF carries an expense ratio of 0.35% and holdings in Hecla Mining Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HL#NYSE">HL</a>) and Reliance Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RS#NYSE">RS</a>), among others.
<h1 class="wp-block-heading">AI Trends To Watch</h1>
Singhai also touched upon the continued interest in semiconductors and AI. While these industries are undeniably buzzing, he warns against impulsive investing. Many companies in this space are trading at lofty valuations that may not be sustainable. 
&#8220;I do foresee a lot of hedge funds diving right into semiconductors and AI stocks. I also believe more retail investors will seriously consider allocating capital to this particular sector moving forward as well. However, it is ripe with extreme bubble-like valuations. The marquee names in the AI industry are trading for as high as 20 to 50 times revenue, which to us seems excessive even given the promise of AI,&#8221; he said.
Singhai also added, &#8220;Not all AI companies can capture 50% of the market or even 30% of the market, and if they fail to do so, they cannot foreseeably justify their current valuations. This leads us to the ultimate conclusion that there will be a few big winners and many, many losers within the industry. As such, most AI companies do not deserve their expensive, hefty valuations.&#8221;
For those interested in exploring the AI-driven growth story, a diversified ETF like the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) offers exposure to leading players like NVDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Broadcom Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) while mitigating the risks of betting on individual stocks. And the cost of investing in this ETF is also reasonable at 0.35%.
All that said, Singhai emphasized the route of ETFs should be seen as tools for diversification and steady returns — not as a shortcut to mimicking hedge fund performance. It will be wise for retail investors to focus on sectors with solid fundamentals rather than on speculative trends.
See Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/new-etfs/25/01/43198940/how-foliobeyonds-innovative-fixed-income-etf-can-provide-low-risk-income-generation-in-volatile-tim">How FolioBeyond&#8217;s Innovative Fixed Income ETF Can Provide Low-Risk Income Generation In Volatile Times</a></li>
</ul>
Photo: Shutterstock

Hedge Funds

BLDR

iShares Dow Jones US Homenstruction Index Fund

IronHold Capital CIO Reveals Trends Hedge Funds Track: 4 ETFs To Watch

Saudi Arabia has unveiled a joint venture between the state oil company Aramco and the state mining company Ma'aden. The collaboration focuses on extracting <a target="_blank" href="https://www.benzinga.com/topic/lithium" rel="noreferrer noopener">lithium</a>, a vital component in batteries for electric vehicles (EVs), renewable energy storage, and electronics. Commercial production is expected by 2027.
"We expect that this partnership will leverage the world's leading upstream enterprise to apply significant low-cost advantages, industry experience, technological innovation, and an integrated supply chain ecosystem," <a target="_blank" href="https://www.aramco.com/en/news-media/news/2025/aramco-plans-transition-minerals-jv-with-maaden" rel="noreferrer noopener">said</a> Nasir K. Al-Naimi, Aramco's upstream president.
The venture aligns with Saudi Arabia's Vision 2030, an ambitious economic transformation plan designed to reduce dependency on oil by developing sectors like mining, technology, and renewable energy.
Vision 2030 targets unlocking $2.5 trillion of mineral resources, including lithium, copper, and gold, while increasing mining's GDP contribution from $17 billion to $64 billion.
Demand for lithium has surged due to the global shift toward green energy. According to Aramco, domestic lithium needs could increase twenty-fold by 2030, supporting the production of 500,000 EV batteries and 110 gigawatts of renewable energy capacity.
The new joint venture aims to explore direct lithium extraction (DLE) technologies and tap into high-concentration deposits within the region. In contrast to traditional evaporation methods, DLE bypasses the need for lithium ponds, allowing faster extraction rates, minimized environmental impact, and reduced water consumption, which are crucial factors in arid climates.
The project also builds on Saudi Arabia's first successful lithium extraction from oilfield brine last December, which was conducted in collaboration with a local startup, Lihytec. Ma'aden is making strides in other commodities, unveiling promising gold and copper deposits at Wadi Al Jaww and Jabal Shayban.
Ma'aden CEO Bob Wilt <a target="_blank" href="https://www.maaden.com.sa/en/news/details/602" rel="noreferrer noopener">noted</a> that these findings are part of one of the world's largest single-jurisdiction exploration programs. "We are committed to establishing mining as the third pillar of the Saudi economy, in line with Vision 2030," he stated.
Strengthening domestic copper production is a priority since the country imports most of its copper—365,000 tons annually. While this demand could double by 2035, the country might secure some of this increasingly important metal from Pakistan as it <a target="_blank" href="https://www.benzinga.com/m-a/24/04/38336936/saudi-arabia-near-deal-for-stake-in-gold-copper-mine-project-in-pakistans-troubled-province" rel="noreferrer noopener">evaluates a stake</a> in Barrick Gold's Reko Diq project.
Price Watch: Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>) is up 0.79% year-to-date.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43013685/research-firms-and-industry-insiders-clash-copper-agree-on-trumps-risk" target="_blank" rel="noreferrer noopener">Research Firms And Industry Insiders Clash On Copper, Agree On Trump's Risk</a></li>
</ul>
Photo by Piotr Swat on Shutterstock

Legal

Saudi Arabia Advances Lithium Plans, Looks Beyond Oil For Commodity Diversification

The global lithium market is set to remain oversupplied, keeping the prices depressed, but this challenging situation for commodity producers could help battery makers ease the transition to <a target="_blank" href="https://www.benzinga.com/electric-vehicles" rel="noreferrer noopener">electric vehicles(EVs)</a>.
Lithium prices have plummeted after soaring to $80,000 per ton in 2022, now trading below $10,000 per ton. The surplus stems from weaker-than-expected EV sales, aggressive production expansions, and strategic commitments by Chinese operators to maintain dominance in the global battery supply chain.
"There are some assets in production that shouldn't really be, but for their own reasons, they're ploughing on," said Martin Jackson, head of battery raw materials at CRU. Reuters <a target="_blank" href="https://www.reuters.com/markets/commodities/lithium-supply-surplus-set-stay-with-battery-makers-help-2024-12-10/" rel="noreferrer noopener">reported</a> his estimate that about 10% of global lithium production is currently unprofitable.
According to the Reuters report, UBS forecasts a 25% increase in global lithium supply this year, with the surplus expected to persist until 2027. Meanwhile, S&amp;P Global projects prices to stabilize between $9,900 and $11,600 per ton until 2026.
Driven by Beijing's ambition to dominate the market, Chinese companies remain a <a target="_blank" href="https://www.benzinga.com/markets/commodities/24/06/39477524/exclusive-china-linked-lithium-volatility-a-headache-for-producers-but-a-win-for-retail-inves" rel="noreferrer noopener">key factor in lithium production</a>. Production persists in Australia, Africa, and South America even at high operational costs, as China has to ensure a steady supply to support its rising EV industry.
In the U.S., lithium producers are also adapting to market pressures. ExxonMobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) <a target="_blank" href="https://www.benzinga.com/news/contracts/24/11/42087743/exxon-mobils-lithium-leap-100000-metric-tons-to-fuel-lg-chems-us-plant" rel="noreferrer noopener">has partnered with</a> LG Chem to secure lithium for a cathode production facility in Tennessee, aiming to become the largest of its kind in the country. Yet, despite the tailwind from the Inflation Reduction Act (IRA), Donald Trump's second mandate could bring potential rollbacks. On top of <a target="_blank" href="https://www.benzinga.com/news/24/07/39870803/us-mine-development-delays-among-worlds-longest-second-only-to-zambia" rel="noreferrer noopener">permitting delays</a>, his policy shift could slow domestic progress.
Major producers like SQM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQM#NYSE">SQM</a>) have <a target="_blank" href="https://www.benzinga.com/insights/earnings/24/11/42036495/a-peek-at-sociedad-quimica-y-mineras-future-earnings" rel="noreferrer noopener">suffered significantly</a>, with the company reporting a 73% decline in quarterly profits despite record sales volumes. Yet, the industry remains optimistic about long-term prospects. If the EV adoption accelerates, analysts see prices recovering above $14,500 per ton.
Still, some lithium operators are set to prosper even at current prices. Volt Lithium, a Canadian firm focusing on direct lithium extraction (DLE), has agreed with Wellspring Hydro to deploy a field unit in North Dakota.
With a worst-case-scenario extraction price of <a target="_blank" href="https://www.benzinga.com/markets/commodities/24/06/39480795/exclusive-volt-lithium-ceo-touts-6b-cash-flow-opportunity" rel="noreferrer noopener">$2,900 per ton of lithium</a>, Volt will test its technology at the <a target="_blank" href="https://voltlithium.com/wp-content/uploads/2024/12/12-10-2024-North-Dakota-Field-Study-Agreement-Final-.pdf" rel="noreferrer noopener">second-largest domestic brine production</a>. The firm already has DLE operations in the Permian basin in Texas and the Keg River formation in its native Alberta.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/12/42409098/newmont-lays-off-senior-employees-pursuing-further-cost-controls" target="_blank" rel="noreferrer noopener">Newmont Lays Off Senior Employees Pursuing More Cost Controls</a></li>
</ul>
Photo via Shutterstock

Media

Lithium Producers Brace For Prolonged Oversupply, Stalled Prices

Editor&#8217;s Note: The first paragraph has been amended to correct TSMC&#8217;s stance
Monday, Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) snubbed the Wall Street journal report that claims its plans for <a href="https://www.benzinga.com/markets/equities/24/09/40973148/tsmc-and-samsung-explore-100b-chip-megafactories-in-uae-amid-ai-boom-and-global-expansion-plans-" target="_blank" rel="noreferrer noopener">new foreign investments</a> are backed by United Arab Emirates (UAE) subsidies.
Recent reports indicated the Taiwanese contract chipmaker intends to collaborate with Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) for a project in the UAE. The initiative entails investments exceeding $100 billion, the Taipei Times <a href="https://www.taipeitimes.com/News/biz/archives/2024/09/23/2003824231" target="_blank" rel="noreferrer noopener">reports</a>.
Taiwan Semiconductor executives reportedly visited the UAE and discussed a plant with advanced facilities akin to Taiwan.
Taiwan Semiconductor remains focused on its <a href="https://www.benzinga.com/government/24/09/40940463/whats-going-on-with-taiwan-semiconductor-stock-on-thursday" target="_blank" rel="noreferrer noopener">U.S. expansion</a>. It promoted Rose Castanares, executive vice president of the Arizona unit, as president last week. The company is a key supplier to Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>). The company also inked at least two smartphone chip deals. One agreement is with Apple for the iPhone and the other is with Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) for the Google Pixel 10 and Pixel 11.
Taiwan Semiconductor is building two fabs in Arizona involving the 4nm, 3nm, and 2nm processes. It also targets a third fab in Arizona, leveraging the 2nm process.&nbsp;
The U.S. offered the chipmaker a $6.6 billion federal grant and $5 billion in loans. Last week, the U.S. Federal Reserve slashed its benchmark interest rate by 50 basis points. Setting the interest rate at 4.75%-5% to spur growth can be a tailwind for capital-intensive semiconductor companies.
Taiwan Semiconductor stock has been up 102% in the last 12 months, being the critical contract chipmaker for AI chips. Investors can gain exposure to Taiwan Semiconductor through ProShares Nanotechnology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TINY#NYSE">TINY</a>) and First Trust S-Network Electric &amp; Future Vehicle Ecosystem ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>).
Price Action: Taiwan Semiconductor stock is up 0.35% at $174.69 premarket at last check Monday.
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Taiwan Semiconductor Denies UAE Investment Rumors: Report (UPDATED)

A possible strike by thousands of dockworkers at <a href="https://www.benzinga.com/government/24/09/40713418/retailers-plea-for-deal-us-ports-union-start-two-day-talk-in-effort-to-prevent-disruptive-strike">East and Gulf coast ports</a> in October could result in major disruptions in the supply chain of goods coming in and out of the U.S., according to an export on container trade.
The International Longshoremen's Association (ILA), representing more than 85,000 dockworkers, may go on strike on Oct. 1 as the union&#8217;s contract expires on Sept. 30 and negotiations between the ILA and U.S. Maritime Alliance of terminal operators show signs of breaking down, said Christian Roeloffs, CEO of online container leasing platform Container xChange.
&#8220;A strike now appears increasingly likely, threatening to disrupt nearly half of the nation&#8217;s ocean trade,&#8221; he said on Tuesday.
&#8220;The uncertainty is compounded by the fact that the duration of these strikes is unclear — it could be resolved within weeks or drag on for months, as seen with the West Coast strike last year.
&#8220;September is traditionally one of the busiest months for U.S. containerized imports, driven by the peak shipping season as businesses prepare for the holiday rush.&#8221;
Read Also: <a href="https://www.benzinga.com/news/global/24/08/40451543/transatlantic-container-shipping-volumes-rise-as-possible-strike-at-u-s-ports-hovers">Transatlantic Container Shipping Volumes Rise As Possible Strike At U.S. Ports Hovers</a>
But it isn&#8217;t just a strike that threatens to disrupt the shipment of goods for the retail, automotive and other sectors, he said.
&#8220;This year presents an unprecedented combination of challenges that could heavily impact supply chains. Potential labor strikes, natural disasters, and tariff uncertainties are converging, creating a highly volatile environment for global trade,&#8221; he said. 
&#8220;This also led to the pulling forward of orders by retailers, which led to strong inventories in the U.S.&#8221;
A strike could also cause havoc for container leasing and trading companies by causing major delays, port congestion and rerouted cargo, Roeloffs said.
"Companies should anticipate short-term spikes in demand for leased containers as retailers rush to secure goods ahead of potential disruptions, particularly for seasonal inventory and industrial shipments," he said.
&#8220;While the threat of strikes looms large, it's important to note that U.S. inventories are currently strong due to the pulling forward of orders earlier this year to avoid existing disruptions. 
The retail, automotive and semiconductor industries, all of which could be impacted by a port strike, saw gains and losses into Tuesday&#8217;s mid-day trading.
<h1 class="wp-block-heading">Retail</h1>
<ul>
<li>Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) fell 1.18% to $79.61</li>
<li>Target Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) slipped 0.26% to $152.45</li>
<li>Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) gained 0.89% to $385.42</li>
</ul>
<h1 class="wp-block-heading">Automotive</h1>
<ul>
<li>Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) gained 1.30% to $10.94</li>
<li>General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) picked up 1.59% to $47.62</li>
<li>Stellantis N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) slipped 0.18% to $15.16</li>
</ul>
<h1 class="wp-block-heading">Semiconductor</h1>
<ul>
<li>Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) fell 0.43% to $168.35</li>
<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) declined 0.87% to $162.59</li>
<li>Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) rose 1.13% to $68.50</li>
</ul>
<h1 class="wp-block-heading">Indexes that follow the retail and automotive sectors trended upward</h1>
<ul>
<li>Dow Jones Transportation Average, which is tracked by the iShares Transportation Average ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYT#BATS">IYT</a>), rose 1.2% to 16,032.91 points</li>
<li>S&amp;P Retail Select Industry Index, which is tracked by the SPDR S&amp;P Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XRT#NYSE">XRT</a>), gained 1.4% to 10,375.45 points</li>
<li>S&amp;P 500 Automobiles &amp; Components Index&nbsp;rose 2.7% to 130.02 points. There is no exchanmge-traded fund that closely follows this index, but First Trust S-Network Future Vehicles &amp; Tech ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>) provides broad exposure to global automobile manufacturers and related companies, including those in the S&amp;P 500 Automobiles &amp; Components Index.</li>
</ul>
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</ul>
Photo: Shutterstock

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US Port Strike In October Could Lead To Major Supply-Chain Disruptions, Says Container Trade Expert

The popular arbitrage trade involving Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) is causing unexpected pain as the U.S. stock premium over its Taiwanese counterpart reaches a 15-year high.
What Happened: The premium of TSMC&#8217;s American depositary receipts over its Taiwan stock has surged to 22% this quarter, the highest average since 2009, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-06-17/a-popular-arbitrage-trade-backfires-as-tsmc-frenzy-grows-in-us">reported</a> on Monday. This surge is attributed to the U.S.&#8217;s growing enthusiasm for artificial intelligence.
Despite a 66% increase in ADRs and a 53% rise in Taipei shares this year, both are still trading below their 2021 valuation highs. The ADRs&#8217; accessibility to foreign investors and their inclusion in various indices and exchange-traded products have contributed to their outperformance.
Arbitrage involves simultaneously buying and selling the same or similar asset in different markets to profit from minor price differences. It exploits short-term variations in the price of identical or similar financial instruments across different markets or forms.
"It's supply/demand dynamics," said Brian Freitas, founder of research firm Periscope Analytics. "Not all foreign investors can hold the Taiwan stock so they just prefer owning the ADRs. Plus there are some indices which only reference the ADR, so ETFs then basically buy up the U.S. shares."
ADRs have historically traded at a premium due to their fungibility, unlike the Taiwan shares, which require special regulatory approval for conversion into the U.S. equivalent. The ADRs are also heavily owned by fund managers, making it challenging for them to increase their position further.
Jon Withaar, head of Asia special situations at Pictet Asset Management, noted that the AI sector remains strong, with NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) alone valued at over $3 trillion. The ADRs&#8217; premium over the local stock has risen to an average of almost 17% this quarter, indicating a continued AI boom.
"The AI boom is not over," Withaar said. "I'm happy to wait for a crescendo widening and perhaps even panic unwinding."
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39345194/apple-nvidia-are-the-most-overbought-stocks-on-wall-street-amid-ai-frenzy-here-are-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple, Nvidia Are The Most Overbought Stocks On Wall Street Amid AI Frenzy: Here Are Other Stocks With Potential For Pullback</a>
Why It Matters: TSMC&#8217;s ADRs have been in high demand due to the global AI frenzy. Companies like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Nvidia, and Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) have almost fully booked TSMC&#8217;s 3nm <a href="https://www.benzinga.com/news/24/06/39310821/apple-nvidia-secure-future-with-taiwan-semis-advanced-chips-as-ai-demand-soars">chip production process until 2026</a>, reflecting the rapid evolution of AI technology.
Meanwhile, TSMC&#8217;s European subsidiary, European Semiconductor Manufacturing Co, plans to <a href="https://www.benzinga.com/news/24/06/39288408/taiwan-semiconductors-european-subsidiary-to-hire-2k-employees-in-semiconductor-push">hire nearly 2,000 employees</a> from Germany and other European countries. This move comes amid a trend of job cuts in the tech sector, as companies reallocate resources to meet the demands of advancing AI technology.
Taiwan Semiconductor stock gained over 64% in the last 12 months. Investors can gain exposure to the semiconductor sector via First Trust Exchange-Traded Fund VIII First Trust Active Global Quality Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGQI#NYSE">AGQI</a>) and First Trust S-Network Electric &amp; Future Vehicle Ecosystem ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>)
Price Action: Taiwan Semiconductor Manufacturing Co. Ltd.&#8217;s U.S.-listed stock closed at $172.51 on Friday, down 0.23%. Year to date, it has increased by 69.91%, and over the past year, it has risen by 64.97%. Over the past five years, the U.S.-listed stock has surged by 355.89%. 
In comparison, TSMC&#8217;s Taipei-listed stock has increased by 55.31% year to date, 57.98% over the past year, and 270.22% over the past five years, according to the <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39328409/hedge-fund-manager-says-trumps-radical-tax-plan-is-hyperbole-useful-to-kick-the-hor?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Hedge Fund Manager Says Trump&#8217;s Radical Tax Plan Is &#8216;Hyperbole…Useful To Kick The Hornet&#8217;s Nest&#8217;: &#8216;Not Going To Be A Plan That Works&#8217;</a>
Image Via Shutterstock 
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Asia

First Trust Exchange-Traded Fund VIII First Trust Active Global Quality Income ETF

AGQI

Taiwan Semiconductor Arbitrage Trade Faces Challenges As US Stock Premium Hits 15-Year High: 'AI Boom Is Not Over'

Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) have almost fully booked Taiwan Semiconductor Manufacturing Company Ltd's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) 3nm chip production process until 2026, reflecting the artificial intelligence frenzy.
This demand spike reflects the rapid evolution of AI technology, pushing TSMC to innovate further in advanced manufacturing, TechNode <a target="_blank" href="https://technode.com/2024/06/12/apple-qualcomm-nvidia-amd-fully-book-tsmcs-3nm-capacity-until-2026/" rel="noreferrer noopener">reports</a>.
N3E, which started mass production last quarter, targets AI accelerators, high-end smartphones, and data centers. N3P, scheduled for mass production later this year, will cater to mobile devices and consumer electronics. It will likely be the standard by 2026.
To accommodate the growing demand, TSMC plans to convert some 5nm equipment to enhance 3nm production capacity, potentially increasing 3nm wafer production to between 120,000 and 180,000 units monthly. TSMC stock is trading higher on Thursday.
The contract chipmaker remains engaged in expanding its <a target="_blank" href="https://www.benzinga.com/news/24/06/39293929/whats-going-on-with-nvidia-amd-stocks-on-wednesday" rel="noreferrer noopener">geographical presence beyond</a> Taiwan. Recent reports indicated that TSMC is looking to recruit 2,000 employees in Europe, coinciding with its plans to construct a Dresden wafer fab.
Also, TSMC has significantly <a target="_blank" href="https://www.benzinga.com/government/24/06/39267332/taiwan-semi-outperforms-chinas-top-chipmaker-amid-tech-challenges" rel="noreferrer noopener">beaten leading Chinese</a> chipmaker&nbsp;Semiconductor Manufacturing International Corp (SMIC), bagging a market share of 62% in the first quarter. It clocked a 30% sales growth in May, reaching $7.1 billion, as the intense demand for AI refuses to fizzle out anytime soon.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13044941/newplot-25.png" alt="" class="wp-image-386123" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13044941/newplot-25.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13044941/newplot-25-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Taiwan Semiconductor stock gained 62% in the last 12 months. Investors can gain exposure to the semiconductor sector via First Trust Exchange-Traded Fund VIII First Trust Active Global Quality Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGQI#NYSE">AGQI</a>) and First Trust S-Network Electric &amp; Future Vehicle Ecosystem ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARZ#NASDAQ">CARZ</a>).
Price Action: TSM shares were trading higher by 0.99% to $174.70 premarket at the last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Ivan Marc via Shutterstock

AMZN

Apple, Nvidia Secure Future with Taiwan Semi's Advanced Chips as AI Demand Soars

General

Automakers Commit To Spend $250B On Electric Cars In U.S.

Electric vehicle producer Tesla (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) reports first-quarter results Wednesday after the close, and while those numbers are expected to be weak because of the coronavirus, analysts remain mostly enthusiastic about the company&#39;s long-term prospects.
Wall Street is expecting Tesla to post a loss of $1.22 a share for the first three months of 2020, but some analysts believe that number will be beaten&nbsp;and that with an ensuing rally, Elon Musk&#39;s company could qualify for entry <a href="https://www.cnbc.com/2020/04/28/tesla-is-poised-to-beat-earnings-and-possibly-qualify-for-sp-500-inclusion-barclays-says.html">into the S&amp;P 500</a>.
Assuming that occurs, a rally could be further fueled by index funds, exchange traded funds and active managers that benchmark to that index.
Analysts are forecasting deliveries <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/04/15883850/tesla-q1-earnings-preview-analysts-convinced-of-long-term-potential-ahead-of-the-pr">of 400,000 this year</a> and that guidance could be weak, comparatively speaking, due to COVID-19. Still, with the recent batch of ratings on Tesla being mostly bullish, it could pay to consider the following ETFs.
ARK Autonomous Technology &amp; Robotics ETF (ARKQ)
One of the kings of the Tesla ETF fray, the ARK Autonomous Technology &amp; Robotics ETF (CBOE: ARKQ) allocates almost 13% of its weight to the stock. That&#39;s been enough to send ARKQ higher by 3.23% year-to-date, which sounds modest, but that showing is downright impressive relative to the Nasdaq-100 Index and the S&amp;P 500.
Few, if any, active management teams are as bullish on or sink with Tesla as ARK.&nbsp;The. team recently addressed total cost of ownership&nbsp;for electric vehicles, which is becoming a relevant point <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/04/15891645/an-oil-etf-for-the-daring">with oil prices slumping.</a>
&ldquo;According to ARK&rsquo;s research, over a three-year period the Long-Range Tesla Model 3 is already less expensive to own than a Toyota Camry, and the low-end Model 3 less expensive than a Ford Focus,&rdquo; <a href="https://ark-funds.com/arkq">according to ARK</a>.
&ldquo;The TCO is much more sensitive to a vehicle&rsquo;s residual value than to gas prices. In our view, the right question is how low the prices of used gas-powered cars will go as the market transitions first to electric vehicles, and then to autonomous electric vehicles.&rdquo;
First Trust NASDAQ Global Auto Index Fund (CARZ)
Somewhat quietly, the oft-overlooked First Trust NASDAQ Global Auto Index Fund (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/carz#NASDAQ">CARZ</a>) lays claim to having the largest Tesla exposure &mdash; and the competition isn&#39;t all that close. Tesla accounts for 23.53% of the CARZ, an advantage of roughly 400 basis points over the ETF with the second-largest weight to the stock.
CARZ tracks the NASDAQ OMX Global Auto Index. While the Tesla exposure is impressive, it hasn&#39;t been enough to prevent the ETF being burned by lagging&nbsp;traditional automotive holdings, as highlighted by the fund&#39;s 19.16% year-to-date decline.
Global X Lithium &amp; Battery Tech ETF (LIT)
The Global X Lithium &amp; Battery Tech ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lit#NYSE">LIT</a>) allocates 14.35% of its weight to Tesla, a total surpassed by just three other ETFs, including the aforementioned ARKQ and CARZ. Interestingly, Tesla isn&#39;t LIT&#39;s largest holding. That title is occupied by Albermale (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/alb#NYSE">ALB</a>). Combined, those two stocks command about one-third of LIT&#39;s weight.
By the end of 2021, the lithium market will return to balance as demand growth resumes from increased electric vehicle adoption and other batteries and eats up new supply,&rdquo; <a href="https://www.morningstar.com/articles/979397/look-to-lithiums-bright-long-term-future">writes Morningstar analyst</a> Seth Goldstein.
Photo courtesy of Tesla.&nbsp;

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