5 High-Flying Stocks Of The Top ETF In Q4

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Invesco WilderHill Clean Energy ETF (PBW - Free Reporttopped the list of the best-performing ETFs of the fourth quarter with impressive returns of more than 98%.

The rally was primarily driven by the president-elect Joe Biden’s push for going greener. Biden plans to pump $2 trillion into green energy over four years to build solar panels, charging stations, and more; vows to rejoin the Paris climate in “exactly 77 days;” and aims for net-zero emissions by 2050.

Additionally, interest in environmental, social, and governance investing has been rising rapidly with firms across the globe investing in cleantech business. The latest coronavirus relief package has set the stage for further rally in the green energy space. This is especially true as the bill includes billions of dollars to promote clean energy such as wind and solar power while limiting the use of a potent greenhouse gas in refrigerants and extending tax incentives for wind and solar energy. This is the first time in 13 years that Congress has used the energy policy to tackle global warming.

Let’s take a closer look at the fundamentals of PBW.

PBW in Focus

This ETF offers exposure to companies that are publicly traded in the United States and engaged in the business of advancement of cleaner energy and conservation. It follows the WilderHill Clean Energy Index and holds 46 stocks in its basket with none accounting for more than 7% of assets. American firms dominate the fund’s portfolio with nearly 75% share, followed by China (9.8%) and Canada (8.5%). The product has amassed $2.3 billion in its asset base and trades in a solid volume of around 547,000 shares a day. It charges investors 70 bps in fees per year.

Though most of the stocks in the fund’s portfolio delivered strong returns, some stocks outperformed, gaining in triple digits. Below, we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund’s basket:

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