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2 Clean Energy ETFs to Know About Now
Gain exposure to the shift in energy
Clean energy is now. According to research by Research and Markets, the Global Clean Energy Market was valued at $788.36 million in 2019. It is projected to reach $1,299.74 billion by 2027, growing at a CAGR of 13% from 2020 to 2027. Clean Energy has become an important segment. Its significance will continue to grow as more countries continue to shift towards clean energy sources as the fight towards climate change and air pollution continues. When it comes to gaining exposure to publicly-traded companies that are pushing the clean energy market forward, two ETFs that allow you to gain exposure to those companies are:
1. The Invesco WilderHill Clean Energy ETF (PBW)
2. The ALPS Clean Energy ETF (ACES)
1. The Invesco WilderHill Clean Energy ETF (PBW)
PBW is an ETF that seeks to track the investment results of the WilderHill Clean Energy Index. The WilderHill Clean Energy Index is an index composed of stocks of publicly-traded companies in the United States that are engaged in the business of the advancement of cleaner energy. As of March 31st, 2021, PBW has a price of $98.39 and an expense ratio of 0.70%. Over the past two years, PBW has provided a total return of approximately 256% and an average annual total return of approximately 89%, with dividends reinvested. Companies in PBW include Daqo New Energy, ReneSola, FuelCell Energy, and Plug Power.
2. The ALPS Clean Energy ETF (ACES)
ACES is an ETF that seeks investment results that correspond with the performance of the CIBC Atlas Clean Energy Index. The CIBC Atlas Clean Energy Index is an index designed to provide exposure to a diverse set of publicly-traded U.S. and Canadian companies involved in the clean energy sector. As of March 31st, 2021, ACES has a price of $78.03 and an expense ratio of 0.55%. Over the past two years, ACES has provided a total return of approximately 181% and an average annual total return of approximately 68% with dividends reinvested. Companies in ACES include Plug Power, Enphase Energy, NextEra Energy Partners, and Tesla.
Clean energy companies and technology is not going anywhere. The world has been changing and will continue to change regarding the sources we use for energy. Clean energy such as solar, wind, hydro, tidal, geothermal, and biomass energy will continue to grow in usage. Remember to always do your research and due diligence before investing.
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