Power portfolios: Millionaire investors shun ASX 200 lithium shares

A young cool man sits in a private jet wearing headphones and casual clothing.A young cool man sits in a private jet wearing headphones and casual clothing.

S&P/ASX 200 Index (ASX: XJO) lithium shares have been the talk of the investing town for years now. The battery-making material is generally touted as critical for the future of energy security.

Interestingly, however, companies producing (or aiming to produce) the white metal appear far more popular with everyday investors than with the wealthiest among us.

That’s according to new data from investing platform Selfwealth Ltd (ASX: SWF).

Just over 1,200 portfolios housed on the platform are worth more than $1 million. That’s less than 1%.

And their top investments differ to those of the average portfolio in one particularly noticeable way: They own far fewer ASX 200 lithium shares.

Millionaire investors avoid ASX 200 lithium shares

Take a stab at the most popular ASX 200 share among all Selfwealth investors, by volume. I’ll give you a second to lock in a guess.

If you said Lake Resources NL (ASX: LKE), pat yourself on the back. It comes in as the top stock and the fourth most popular ASX investment overall, behind three exchange-traded funds (ETFs).

In second place is Core Lithium Ltd (ASX: CXO). Meanwhile, Pilbara Minerals Ltd (ASX: PLS), Sayona Mining Ltd (ASX: SYA), and Liontown Resources Ltd (ASX: LTR) are all found within the platform’s 20 most popular investments.

But what about the wealthiest 1% of investors?

Well, only one ASX 200 lithium share appears in the 20 most popular investments found within portfolios worth more than $1 million.

That is S&P/ASX 20 Index (ASX: XTL) giant Pilbara Minerals. The $14 billion ASX 200 lithium share holds the seventeenth spot among millionaires’ largest holdings.

So, what are Aussie millionaires investing in instead? Many appear to turn to ASX 200 blue chips, as my Fool colleague Tony reports.

The most popular ASX investment among the largest 1% of portfolios is Fortescue Metals Group Limited (ASX: FMG). Its iron ore peer BHP Group Ltd (ASX: BHP) comes in third place.

Big four banks Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), and Commonwealth Bank of Australia (ASX: CBA) also make the top 10.

The post Power portfolios: Millionaire investors shun ASX 200 lithium shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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