Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Global X Lithium ETF (NYSE: LIT) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Global X Lithium and see what CAPS investors are saying about the ETF right now.

Global X Lithium facts


July 2010

Total Assets

$104.3 million

Investment Approach

Seeks to provide investment results that correspond to the Solactive Global Lithium Index, which tracks companies active in the exploration and/or mining of lithium or the production of lithium batteries.

Expense Ratio


Dividend Yield


Year-to-Date / 1-Year Return

(33.4%) / (22.8%)

Top 10 Holdings With High CAPS Rating (4 or 5 stars) and Portfolio Weight

Sociedad Quimica y Minera (NYSE: SQM) (23%)

FMC (NYSE: FMC) (18.4%)

Rockwood Holdings (NYSE: ROC) (9.8%)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, all of the 106 members who have rated Global X Lithium believe the ETF will outperform the S&P 500 going forward. These bulls include cablet and ILLUMI.

Less than a year ago, cablet succinctly summed up the bull case: "Lithium may possibly become the new oil for the 21st century as more devices (and soon autos) rely on longer lasting batteries. This ETF is a great way to get in now to Lithium while keeping lower risk than owning one or two of the underlying stocks."

Global X Lithium even sports an annual turnover ratio of just 6%. That's lower than other specialty commodity ETFs like Market Vectors Agribusiness (NYSE: MOO) (20%) and iShares S&P North American Natural Resources (NYSE: IGE) (11%).

CAPS member ILLUMI elaborates on the bull case:

Used for energy storage for smart grid (read: small-scale renewable/green energy), electric cars, phones/portable devices, medical, etc. Everything will be expected to last many hrs. without main power in the next few decades, and Li-Ion batteries are the way to store that energy, barring a major breakthrough in a different technology.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Rockwood. Motley Fool newsletter services have recommended buying shares of Chemical & Mining Co. of Chile. Try any of our Foolish newsletter services free for 30 days.

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