New ETF To Focus on Lithium and Battery Makers (SQM, FMC, ROC)

According to a report from the Wall Street Journal, hedge fund MC Capital Advisors helped launch a new ETF which tracks lithium producers and battery makers. The fund will be known as Global X Lithium, and is projected to start trading this week. It is expected to trade under the ticker symbol "LIT".MC Capital provided start up money to Global X Management Co., to start the ETF. As a result of this agreement, MC Capital will receive 50% of the ETF's profits. The three largest stocks were SQM (NYSE: SQM), FMC Corporation (NYSE: FMC) and Rockwood Holdings (NYSE: ROC). The ETF has an expense ratio of 0.75%. I would look for an initial squeeze up for a couple percentage points in the top three companies as the ETF begins to trade, but will wait to have a stronger opinion on it until it actually begins to trade.