Kanish Chugh

because of some of these inputs such as cobalt and the price of cobalt really rising.

yeah definitely so think of the battery value chain it's made up of a number of different industries across the globe so start at the at the beginning you need the mining and the chemical industry so these are the ones that are producing your raw materials to actually manufacture the battery cell components so that is companies in australia has a number of these and within our etf acdc we

We actually have a few lithium mining companies within the portfolio.

So companies like Galaxy Resources, Pilbara, et cetera, they are companies at the raw material stage.

Then you start to progress forward and you've got the manufacturing.

So they're processing the materials, they're putting them into the cells and the packs that are actually producing and manufacturing the actual batteries side of it.

So the actual lithium batteries.

So that's companies like Samsung SDI, LG Chem, for example.

Then you've got the application, so the production and the end use.

So we all know Tesla, and they're probably one of the leaders in this space in terms of obtaining battery technology and batteries from other companies such as LG Chemical or Samsung STI, utilising that and putting it into their vehicles and producing one of the world's most popular electric vehicles.

So you've actually got companies, and I can run through a few later on, but a company like Renault, for example,

is actually taking over in terms of electric vehicle sales in Europe from Tesla because they're doing a lot more work in this particular space.

So within our ETF, we don't just have Tesla.

Tesla's actually only about 4.5%, 5% of the portfolio at the moment, and that's obviously partly because of the price sort of move that it's had since the latest portfolio rebalance in November.

But we've got companies like BMW, Renault, Toyota, et cetera, that are in that portfolio that are in that application stage.

And I think there's a single stock risk that would apply to that.

So Tesla, obviously, over a 12-month period has done very well.

But there have been moments, days or a week or a month where the price of Tesla may not have done and may not have performed as well as you would have hoped or there may have been negative performance.

There is some volatility that is attached to having single stocks.

For us, the idea of diversification is really important and that's why an ETF is providing a solution for that because you essentially are buying the whole megatrend.