LG Energy Solution

LG Energy Passive Flow from Overseas ETFs: Global X Lithium & Battery (LIT)

Equity Capital Markets
364 Views, 03 Jan 2022 17:26
EXECUTIVE SUMMARY
  • Given the AUM of the Global X Lithium Battery ETF (ticker: LIT), the potential passive impact on LG Energy and LG Chem should be worthy of our careful attention.
  • If LIT revises its methodology, the timing to include LG Energy is expected to be the April rebalancing.
  • LG Energy will have a 2-3% index weight, welcoming a passive inflow of ₩130-200B (0.2-0.3% of SO). In contrast, ₩232.1B from LIT will likely escape LG Chem, 0.5% of SO.
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Sanghyun Park
Korea / Special Sits, Pairs, Index Rebalancing
Clepsydra Capital
South KoreaEvent-DrivenEquity Bottom-Up

I investigate special situations, pairs, and index rebalancing trades in Korea.

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