Renewable energy sector-related exchange traded funds could benefit from President Joe Biden’s proposed infrastructure spending plan.
Biden has outlined a $2.3 trillion infrastructure plan that would expand subsidies to the renewable energy sector and address key bottlenecks impeding the shift to a green energy grid, the Wall Street Journal reports.
Specifically, the plan would create new tax credits to support the construction of high-voltage transmission lines, a major hurdle in the expansion of renewable energy. Additionally, it includes a proposed 10-year extension of wind, solar, and battery tax credits, which are currently set to expire in coming years.
Tax credits have “been very effective at reducing costs for wind and solar, and they could do the same for transmission,” Trey Ward, chief executive of Direct Connect Development Co., told the WSJ. “It is very simple: If you want more renewables, you need more transmission.”
Gold Miners Recorded Record High Margins in 2020 April 3, 2021
Gold producers had their most profitable year ever in 2020, based on one metric. The average all-in sustaining cost (AISC) margin, which is the gold price minus the cost to produce the metal, hit a record $828 per ounce, according to Metals Focus. What this means is that for every ounce of gold a mining company produced in 2020, it got to pocket $828 on average. This is comfortably higher than the previous record of $666 set in 2011.
The price of gold hit a record high of $2,070 in 2020, which helped increase revenues. But companies have also been focused on cost discipline. We didn’t see gold miners’ exploration budgets increase significantly in 2020, due in part to the pandemic, which forced mine closures in China, South Africa, Peru, Mexico and elsewhere.
How this NFO from ICICI Pru MF contains downside better
April 03, 2021
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ICICI Pru Nifty 100 Low Volatility 30 ETF FoF’s ability to contain losses brings stability to your portfolio
As markets get more volatile, funds that contain downside better could bring a balancing factor to your portfolio. ICICI Pru Nifty 100 Low Volatility 30 Fund (Low Vol 30) could be just what the doctor ordered. Launched as an ETF (Exchange Traded Fund) in mid-2017, the NFO of the ‘Fund of funds’ (FOF) of this ETF is open until April 6. The FOF will, nevertheless, reopen for investments shortly afterwards. The advantage of the FOF structure is that it allows investors to take exposure without worrying about the liquidity of the ETF as also take the SIP route to investing. Investors who don’t have a high appetite for risk can sign up for this fund.
Markets at record highs as infrastructure debate begins
Thoughts
A late surge drove the S&P 500® Index to a record high last week, as economic optimism outweighed valuation worries. Investors worry that we could see elevated equity and bond market volatility in this holiday-shortened week, as large institutional investors rebalance portfolios following a quarter that saw strong equity performance and weak bond returns.
Dispersion of performance in the capital markets is wide this year. To date in 2021, the S&P 500 has returned 6%, the Russell 1000 Growth Index is flat, the Russell 1000 Value Index 12%, the Russell 2000 Index 13%, the MSCI EAFE Index 4%, the MSCI Emerging Markets Index 2%, the Bloomberg Barclays US Aggregate Bond Index -3%, High Yield +1% and the 20+Year Treasury -13%.
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