Tesla reports quarterly results Monday after the market closes, and battery-focused funds offer investors a way to play the expected surge in electric vehicle sales. The Amplify Lithium & Battery Technology exchange-traded fund jumped 3.7% Wednesday, putting the ETF on track for its best day since March 11. The gain came as investors rotated back into high-growth areas of the market, while the major stock averages bounced back after heavy losses to start the week . Some of the biggest advancers were Ganfeng Lithium , Nouveau Monde Graphite and Jinchuan Group International Resources , all of which posted double-digit percentage gains. Other names on the move included China-based electric vehicle companies Li Auto and XPeng . For the year the fund, which has roughly $205 million in net assets, has gained about 14%. Shares are down roughly 8% from their Feb.16 52-week high, however, amid weakness across clean tech. The fund's top holdings are Contemporary Amperex Technology, Tesla , BHP Group , BYD Company , Nio and LG Chemical . The Global X Lithium & Battery Tech ETF , which also tracks the space, advanced more than 4% on Wednesday, bringing its 2021 gain to more than 30%. The fund has about $3.9 billion in net assets, and top holdings are Albemarle , Yunnan Energy , Ganfeng Lithium Co. and Eve Energy . "LIT invests in companies throughout the lithium cycle, including mining, refinement and battery production, cutting across traditional sector and geographic definitions," notes the fund's prospectus. Lithium-ion batteries are found in everything from phones to computers to electric vehicles. They're key to the energy transition and are increasingly being used for residential and grid-scale storage. They allow power harnessed from renewable sources like wind and solar to be stored and then used during times when the sun isn't shining or the wind isn't blowing. — CNBC's Michael Bloom contributed reporting.
Lithium-ion battery cells
Tomohiro Ohsumi | Bloomberg | Getty Images
Tesla reports quarterly results Monday after the market closes, and battery-focused funds offer investors a way to play the expected surge in electric vehicle sales.
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