Clean Energy’s $18 Billion Boom Spawns Double-Leveraged ETFs The Direxion Daily Global Clean Energy Bull 2X Shares and Direxion Daily Global Clean Energy Bear 2X Shares would be the first leveraged clean-energy ETFs in the $6.2 trillion ETF industry.
Claire Ballentine | May 06, 2021
(Bloomberg) It’s been a wild ride for investors who plowed billions of dollars into clean-energy funds over the past six months. Now one ETF issuer is getting ready to offer funds designed to amplify every move.
Direxion Investments plans to start an exchange-traded fund intended to double the daily performance of the S&P Global Clean Energy Index. The firm also is working on one that seeks to multiply the return of being short the index by two, according to a filing with the U.S. Securities and Exchange Commission.
Source: shutterstock.com/rafapress
First up on our list of hot stocks, this Minneapolis-based utility operates several subsidiaries in eight different states: Minnesota, Colorado, Wisconsin, Texas, New Mexico, Michigan, South Dakota and North Dakota. Xcel Energy has 3.7 million electricity customers and 2.1 million natural gas customers through its four regulated operating companies.
On Apr. 29, CEO Ben Fowke reported during the company’s first-quarter 2021 conference call that the mid-February storm in Colorado cost Xcel close to $1 billion. Now, the company plans to recover those costs from customers over the next 24 months.
Despite that $965 million price tag, though, Xcel reported a profit of $362 million in Q1. That was 23% higher than a year earlier. The top line also grew by 26% to $3.54 billion. What’s more, this company’s guidance for 2021 predicts earnings per share (EPS) of $2.95 at the midpoint. That’s 6% higher than the $2.79 per share XCEL earned in 2020.
ESG investments are rated on their environmental, social, and corporate governance impacts.
Research suggests ESG investments are more lucrative and more stable than other traditional fund types.
In the past, if an investor wanted to put their money where their mouth was and invest in companies that aligned with their morals, the only option was to avoid certain companies or markets. But as impact investing has evolved and expanded, so have the opportunities for investors to build portfolios they truly believe in.
One such opportunity is ESG investing, a method of sustainable investing that doesn t just consider an asset s rate of return. It scores a company in three crucial areas pulled straight from the acronym environmental, social, and corporate governance to help investors build portfolios they can be proud of.
Big ESG Inflows Are Leading to Concentration Concerns etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
10 Best Renewable Energy Stocks to Buy Now
Energy usage around the world is rising as emerging economies in Asia become the drivers of the manufacturing power in the global economy. According to statistics released by the United States Energy Information Administration, the energy usage on the planet is expected to grow by 50% in the next three decades, largely due to the rising demand from China, India, and other nations in the East. However, diminishing fossil fuel sources and global warming concerns around the burning of coal, oil, and gas have led to a shift in governmental priorities.
Global Shift to Renewable Energy