Short Term Trading Week Starting: 4 Dec, page-294

  1. 693 Posts.
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    While its not a strictly lithium producer ETF, I think there is definitely some correlation between the ETF moves and the larger lithium producer shareprices. Fund flows (which can be seen on etf.com) are worth watching. If there are any sustained ETF fund outflows at some point in the future, the ETF will sell down constituent stocks (ie. GXY, PLS, ORE, NMT, AJM, LIT). I've had a quick look at the ASX stocks in the ETF and it appears this ETF holds between 2.4 to 3.3% of total listed ordinary shares of these companies. So ETF fund outflows shouldn't have too much of an impact on these ASX lithium stocks. This is good. Don't want a situation like the Van Eck ETFs debacle in June where an ETF constituent rebalance saw many ASX gold stocks sold down heavily (as 2 Van Eck ETFs held 10 to 15% of these gold companies shares).
 
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