Clean energy stocks are as crowded as tech before dotcom crash, says MSCI ft.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ft.com Daily Mail and Mail on Sunday newspapers.
A break down of clean energy ETFs as competition hots up
Clean energy ETFs in Europe have seen $5.3bn inflows since the start of $5.3bn By Tom Eckett, 26 April 2021
Competition in the clean energy ETF space in Europe is hotting up amid increasing demand for one of the most attractive megatrends on offer.
Clean energy strategies delivered some of the best returns across all European listed ETFs last year following the continued shift to renewable resources and US President Joe Biden’s pledged support of the industry.
Highlighting this, the iShares Global Clean Energy UCITS ETF (INRG) soared 136% over the 12 months as almost $3bn inflows drove the underlying stocks higher and the Biden bounce came into effect.
In the last two articles we analysed the choices for the DIY investors among first green funds and second green investment trusts. Here we turn our focus towards trackers and specifically exchange traded funds.
It s been an eventful year for clean energy stocks after their stellar gains last year. The shares of many firms in the sector have been caught up in the sell-off of growth companies since late January.
Like technology shares, clean energy stocks had acquired some lofty valuations, thanks to expectations of a shift away from fossil fuels accentuated by the transformative effects of the pandemic.
Magic bus: The journey towards a decarbonised future with little or no role for fossile fuels is one which investment funds are trying to piggy-back.
Plug Power (NASDAQ:PLUG) stock had declined 7.6%,
Bloom Energy (NYSE:BE) was down 8.9%, and
Blink Charging (NASDAQ:BLNK) had dropped 9.6%.
At least in part, you can probably blame
The Wall Street Journal for that.
Image source: Getty Images.
In a column this morning, the
WSJ described the growth of a clean-energy stock mania in the markets over the past several months, and in particular the badly designed but massively popular
S&P Global Clean Energy index.
As the newspaper reports, money has been pouring into index funds that track the S&P s clean energy index, causing both the funds and the stocks they contain to as much as quintuple in value in five months through their January peak. The problem is, these gains were largely technical in nature, caused by too much money chasing too few stock opportunities as the index funds struggled to pour money into the small number of stocks available to trade.
Why Plug Power, Bloom Energy, and Blink Charging Are Plunging Today fool.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com Daily Mail and Mail on Sunday newspapers.