Why Clean Energy ETFs Are Shining

Clean energy ETFs are among the top-performers this year as well, after a spectacular performance last year. This comes after a volatile decade when their performance was largely dependent on government subsidies and oil prices.

The cost of renewable energy generation has been falling in recent years with continued technological innovation, and that has started changing the competitive balance between clean and traditional energy.

The Invesco Solar ETF (TAN - Free Report) holds the US and international companies in the solar energy industry. Enphase Energy (ENPH - Free Report) and SolarEdge Technologies (SEDG - Free Report)—the largest holdings in the ETF—have skyrocketed more than 500% and 200% respectively over the past year.

The Invesco WilderHill Clean Energy ETF (PBW - Free Report) holds US traded companies involved in cleaner energy sources or energy conservation. Tesla (TSLA - Free Report) is its top holding.

The ALPS Clean Energy ETF (ACES - Free Report) holds US and Canadian based companies that are focused on renewables and other clean technologies.

The three ETFs have gained more than 50% in the last 12 months. To learn more about them, please watch the short video above.

Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and ...

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