Maybe to try and pull the fund ahead? It’s been in the doldrums lately.
Hmm. The whole idea of a sector ETF like this is interesting. Let’s say the fund is weighted to ORE or SQM or so on (a big player). And then that player has a bad run, or gets shorted like heck. Well, the entire fund starts to show downward pressure. And then if the fund is used as a ‘gauge of wider Li sector performance’ then the prevailing sentiment can turn negative, when in fact, the other 24 stocks are doing just fine and the sector is performing as it was before.
I know they’re supposed to be balanced but I just wonder if they’re skewed a little.. hmm. Anyway, I’m not using those as an primary indicator, and will stick to the tried and tested method of investing in companies that have clear vision, strong management and a clean balance sheet. I’ll let you know how I get on.
PS My Cayman Island Bank Account is the Worlds Largest Resource