BATT vs SETM

Key Takeaways

• BATT targets the lithium battery technology supply chain, including battery metals, storage solutions, and electric vehicles, while SETM provides broader exposure to critical materials essential for the energy transition, such as uranium, copper, lithium, and rare earths.
• BATT holds approximately 55 securities and follows a rules-based index focused on companies deriving significant revenue from lithium battery technology, whereas SETM tracks an index of 100–120 holdings emphasizing pure-play energy transition materials companies.
• Both ETFs maintain similar expense ratios, with BATT at 0.59% and SETM at 0.65%, reflecting their specialized thematic mandates.
• BATT exhibits concentrated exposure to battery producers and automakers, while SETM offers greater diversification across mining and materials subsectors, resulting in differing risk profiles tied to commodity cycles.
• Structural differences position BATT for investors seeking EV and battery-specific themes and SETM for those pursuing wider critical minerals exposure amid global electrification trends.
• Neither fund employs leverage or inverse strategies; both are passively managed, physically replicated ETFs with annual or semi-annual rebalancing depending on their underlying indices.

Introduction

Amplify Lithium & Battery Technology ETF (BATT) and Sprott Critical Materials ETF (SETM) both provide targeted equity exposure to materials and technologies supporting the global shift toward electrification and cleaner energy. These ETFs do not compete directly but offer complementary strategies within the critical materials and energy transition space. BATT narrows focus to the lithium battery ecosystem, while SETM spans a wider array of minerals and metals required for energy generation, transmission, and storage. Investors comparing the two gain insight into varying degrees of thematic concentration and sector breadth.

Amplify Lithium & Battery Technology ETF (BATT) Overview

BATT seeks to track the EQM Lithium & Battery Technology Index. The fund invests at least 80% of its assets in securities of companies involved in the development, production, and use of lithium battery technology, encompassing battery storage, battery metals and materials, and electric vehicles. It holds approximately 55 securities and is non-diversified. Top holdings typically include Contemporary Amperex Technology Co Ltd, BHP Group Ltd, Tesla Inc, BYD Co Ltd, and Freeport-McMoRan Inc. Sector allocations concentrate in materials, industrials, and consumer discretionary, with notable exposure to lithium, nickel, and related supply-chain participants. The expense ratio stands at 0.59%. BATT employs a passive, rules-based approach with periodic index rebalancing.

Sprott Critical Materials ETF (SETM) Overview

SETM seeks to track the Nasdaq Sprott Critical Materials Index. The fund targets companies deriving at least 50% of revenue or assets from mining, exploration, production, recycling, or related activities involving energy transition materials, including uranium, copper, lithium, nickel, cobalt, graphite, manganese, rare earths, and silver. It typically holds 100–120 securities. Prominent holdings often feature NAC Kazatomprom JSC, Freeport-McMoRan Inc, Cameco Corp, Albemarle Corp, and Lynas Rare Earths Ltd. Allocations span metals and mining subsectors with global developed and emerging market exposure. The expense ratio is 0.65%. SETM follows a passive, market-cap-weighted methodology with semi-annual index rebalancing.

Industry and Thematic Backdrop

The critical materials sector benefits from rising global electricity demand, technological advancements in energy storage, and policy support for decarbonization. Macro drivers include expanding electric vehicle adoption, renewable energy infrastructure buildout, and supply-chain diversification efforts amid geopolitical considerations. Both ETFs face risks associated with commodity price volatility, regulatory changes in mining jurisdictions, and shifts in capital expenditure by major producers. Capital flows into energy transition themes have remained steady across recent market cycles, supporting long-term structural demand for the underlying holdings.

Performance and Positioning Comparison

In recent market cycles, BATT has shown sensitivity to battery metal price movements and electric vehicle production trends, with performance influenced by earnings from key holdings in lithium and automotive sectors. SETM has reflected broader commodity cycles, including uranium and copper dynamics, leading to differentiated volatility relative to BATT. Relative positioning highlights BATT’s deeper tie to downstream battery and EV applications versus SETM’s upstream mining emphasis. Both funds exhibit elevated volatility compared with broad equity benchmarks due to their thematic concentration, with performance drivers tied to interest rate expectations, global manufacturing activity, and mineral supply constraints over multi-month periods.

AI Screener

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Tickeron AI Verdict

Based on observable structural characteristics, Tickeron’s AI would currently assign a modestly higher probability of favor to SETM. Its broader diversification across critical materials, larger number of holdings, and balanced exposure to multiple energy transition subsectors provide a more resilient profile amid evolving commodity and policy environments compared with BATT’s narrower lithium-battery focus.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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