Invest in megatrend ETFs designed to track the performance of companies involved in climate change solutions and the clean energy sector
Climate change and clean energy investing – An expanding population and the rising demand for food, energy and materials continue to strain the finite resources of the planet. Therefore the need for solutions that improve energy efficiency, lower food waste and provide alternatives to scarce resources has never been greater. Underlying these trends is the persistent increase in global emissions. Which has led to intensifying debates around climate change and how we can resolve it.1
ETF charts below are delayed by 15 minutes for NASDAQ. For NYSE and AMEX this is 20 minutes.
Clean energy investing
Clean energy ETFs invest primarily in stocks of companies involved in alternative energy sources, such as solar, wind and water.
The sectors with highest weightings percentages are Technology, Industrials and Utilities. Morningstar defines the first two as sensitive and the last one as defensive super sectors.
Top stock holdings in clean energy ETFs are companies like Plug Power, First Solar and Tesla. Although this differs per ETF.
ALPS Clean Energy ETF (ACES)
iShares Global Clean Energy ETF (ICLN)
Invesco WilderHill Clean Energy ETF (PBW)
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)
Invesco Global Clean Energy ETF (PBD)
SPDR S&P Kensho Clean Power ETF (CNRG)
VanEck Vectors Low Carbon Energy ETF (SMOG)
A typical water ETF invests in water utilities and companies involved in water purification. But also sewer and pipeline construction and related equipment.
The sectors with the highest weightings percentages are Industrials, Utilities and Healthcare. Morningstar.com defines the first as sensitive and the last two as defensive super sectors.
Top stock holdings in water ETFs are companies like Danaher, Ecolab and Xylem. Although this differs per ETF.
Invesco S&P Global Water Index ETF (CGW)
First Trust Water ETF (FIW)
Invesco Water Resources ETF (PHO)