A Battery Supply Chain ETF Quietly Returned 66%, Stomping AI Stocks

Core Insights - The battery supply chain has delivered exceptional returns in 2025, outperforming the focus on artificial intelligence, particularly benefiting electric vehicles and grid storage [1] Group 1: Performance Overview - The Amplify Lithium & Battery Technology ETF (BATT) returned 66% year-to-date in 2025, significantly outperforming the Nasdaq-100's 22% gain [2][3] - Battery materials outperformed finished vehicles, with Albemarle surging 78% and Freeport-McMoRan jumping 41%, while Tesla gained only 18% [3][6] Group 2: Investment Strategy - BATT's strategy involves diversified exposure across the entire battery ecosystem, including lithium miners, copper producers, battery component manufacturers, and select EV companies [2][5] - The top holdings include BHP Group (7.25%), Contemporary Amperex Technology (CATL) (6.72%), Tesla (6.35%), and BYD (4.79%), focusing on the picks-and-shovels opportunity rather than individual automakers [5] Group 3: Market Dynamics - The ETF's performance is driven by rising demand for battery materials due to accelerating EV adoption and a commodity supercycle benefiting lithium and copper producers [8] - The fund has a 74% international exposure, particularly to Asian battery manufacturers like CATL and Samsung SDI, capturing growth in the largest EV markets [8] Group 4: Fund Characteristics - BATT serves investors seeking thematic exposure to electrification while minimizing individual stock volatility, with a reasonable expense ratio of 0.59% [7] - The fund's $90.8 million asset base allows for nimbleness in accessing smaller opportunities while maintaining adequate liquidity [7]