Business First Family Business, Accounting, Finance, Investing, Marketing And Management
A group of seven developed nations recently gathered to discuss reductions in fossil fuel consumption. The United States, Germany, France, The U.K., Italy and Japan were all in favor of making efforts to reduce greenhouse gas emissions by 40-70%. This has paved the way for clean energy ETFs to start a positive trend upwards. Their value can only increase from the developed world’s need for renewable energy. If you are interested in investing in a clean energy ETF, consider those listed below. Here are the best options for a clean energy ETF that will not require you to stay up to date on 1 AUD to USD exchange rates.
Global X YieldCo Index ETF
Global X YieldCo Index ETF (YLCO) has over $20,000 worth of total assets. This may not seem like much if you are looking for the best retirement investing opportunities. However, the fund’s performance is enough to speak for itself. Global X YTD is just over 19%. This is far better performance than some other ETFs with much higher total assets figures. If you value high-performing ETFs and pay less attention to total assets, Global X YieldCo Index ETF may be the right investment for you.
PowerShares Global Energy ETF
PowerShares focuses on granting exposure to stocks involved with renewable energy sources and technologies facilitating cleaner energy. As of November 2015, they have 105 securities with total net assets of $65.4 million. Their funds are widely spread. No single office security holds more than 2.35% of PBD. This clean energy ETF is concentrated mainly in information technology and industrials. Though they have an average expense ratio of 0.81%, they were up 5% in a one-month period last year. This upward trend has continued onto the first quarter of 2016. PowerShares is not a perfect option. However, their sizable spread of assets makes them a top clean energy ETF to invest in.
VanEck Vectors Global Alternative Energy ETF
VanEck Vectors is another clean energy fund to consider, with over $67,000 in assets. Their year to date performance is 9.23%. While their one day change is currently -.38%, this is only a temporary dip that offers a great way to make a sound investment that has the opportunity for growth. This is especially beneficial seeing as how the VanEck Vectors Global Alternative Energy ETF closing price at the time of writing this post was $55.14. If you want one of the top performing alternative energy ETF options, consider VanEck.
Guggenheim Solar ETF
Guggenheim Solar ETF is the largest clean energy ETF in the world. It has over $445 million in assets and trades nearly 423,000 shares per day. It has a relatively high turnover rate of 51%. This correlates to a 0.70% expense ratio, which is above the industry average of 0.68%. Guggenheim seeks to provide investment results through correspondence with the MAC Global Solar Energy Index. The fund invests at least 90% of total assets in companies in the index. Therefore, it strives to correspond with at least 95% of the benchmark according to registered investment advisers requirements. In 2014, the fund had an annual return of -1.25. However, they are set to experience a surge in value after the 2015 UN Climate Change Conference in Paris. Guggenheim’s expected surge and massive assets are the main reasons they are a top clean energy ETF for investment opportunities.
First Trust NASDAQ Clean Edge Green Energy Index Fund
First Trust is a top clean energy ETF. The fund charges an annual expense ratio of 0.60%. This is slightly below the industry average. However, it trades at an efficient volume of 117,000 shares a day. It also manages $137 million worth of assets. They have investments in companies across a wide range of categories including solar power, biofuel and advanced batteries. It has 50 securities with rather large allocations in TSLA, FSLR and Linear Technology. First Trust trades according to the NASDAQ Clean Edge Green Energy Index. This is noteworthy. The NASDAQ Index is a modified market cap weighted index. Larger companies have larger index weighting, thus preventing excessive concentrations in large alternative-energy stocks. First Trust is a top clean energy ETF that even an investment banker would take a chance on due to its market-cap system and variety of investments.
iShares Global Clean Energy ETF
iShares provides a clean energy ETF investment opportunity for those looking to snag a deal on a Toronto business. iShares charges an annual expense ratio of 0.47%, which is well below the average. They also have an annualized return of -7.71%. Compared to Guggenheim, iShares seems to have a rather low valuation with little in potential returns. However, it is currently trading a discount to the S&P 500. This is partly due to its low numbers. Companies in the S&P are set to grow 10% in 2016. This makes it a good time to make a cheap investment. iShares is still among the top clean energy ETFs, with $74.8 million is total assets. It is a great choice for savvy investors.
Recent events like the Climate Change Conference in Paris are leading a trend towards renewable energy technologies. This is setting the stage for clean energy ETFs from Yacktman and others to rise in value. ETFs like Guggenheim and iShares are set for increased returns despite their prior history. If you are looking to invest in a clean energy ETF, consider choosing between the top clean energy ETFs listed in this post.
Photo from http://www.etftrends.com/2015/09/clean-energy-etfs-wall-street-pledges-to-raise-investments/
