Clean-tech stocks have the wind at their back these ETFs help you tap into the global megatrend MarketWatch 1/30/2021
JEFF REEVES S STRENGTH IN NUMBERS
This year we may see the clean-tech megatrend finally gather enough momentum to become more than just a catchphrase.
Below I list a handful of exchange traded funds (ETFs) for investors to gain entree to the clean-tech and renewable-energy revolution.
Consultant Bain & Co. called COVID-19 a “dress rehearsal for dealing with climate change” as the world was challenged to urgently rethink the old ways of doing things. In November, Democrats won big with a mandate to tackle sustainability issues as evidenced by President Biden rejoining the climate-focused Paris Agreement right away. And to top it off, European carbon markets has had record prices steadily driving up costs for polluters as the European Union prepares for deeper emissions cuts.
Author Bio
Daniel has been writing for Fool.com since 2019. A fan of value and dividend stocks, he covers the industrial sector, oil and gas, and renewable energy. He graduated summa cum laude from the University of Houston with a BBA in finance and marketing and a certificate in personal financial planning.
Wind and solar energy stocks have rewarded investors with some monster returns. Just last year, the
First Trust Global Wind Energy exchange-traded fund (ETF) and the
Invesco Solar ETF returned 59% and 234%, respectively, well exceeding the market s 16% gain.
ETFs contain industry-leading companies that are meant to reflect a sector s overall performance. Investing in an ETF has the benefit of diversification, but individual companies can provide even greater upside. Leading solar companies like
The Globe and Mail JOEL SCHLESINGER Published December 10, 2020
Scar1984/iStockPhoto / Getty Images
Keen investor interest in the renewable energy sector has sent exchange-traded funds that cover it soaring this year.
Several climate-friendly government stimulus programs are driving enthusiasm for green energy ETFs, says Daniel Straus, director of ETF and financial products research at National Bank Financial Inc.
He describes President-elect Joe Biden’s climate-friendly policies, in particular, as a “tailwind behind solar, wind and other green investment.”
Story continues below advertisement
Prices of some pure-play clean energy ETFs have posted triple-digit returns so far this year, with Canadian companies among their top holdings.