Back in January, we warned that the green energy sector was in danger of overheating after massive runups by clean energy stocks in 2020. The momentum remained strong early in the year after Joe Biden ascended into the Oval Office in hopes that his ambitious clean energy plan would be a tailwind for investors in the so-called sustainable or ESG funds.
It was not long, however, before cracks began to appear in the clean energy bull camp.
After emerging as the hottest corner in the clean energy universe in 2020, solar stocks began to let off steam in January, with leading solar names such as
Since the beginning of May, about $154 million has been pulled from clean-energy ETFs.
Claire Ballentine | May 12, 2021
(Bloomberg) After a stellar 2020, the record-breaking boom in clean-energy funds is rapidly giving way to a bust.
Investors are yanking cash from the sector at the fastest pace in a year, while two of the biggest exchange-traded funds tracking the industry the iShares Global Clean Energy ETF (ICLN) and Invesco Solar ETF (TAN) have each tumbled at least 24% in 2021. Since the beginning of May, about $154 million has been pulled from clean-energy ETFs.
Thank the pressure on big-tech stocks. Funds that have higher environmental, social and governance standards have long benefited from substantial stakes in giant growth companies. Now a post-pandemic economic recovery is triggering a rotation to cheaper shares, and the benefits are swiftly becoming drawbacks.
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SEC Delivers a Christmas Gift to Advisor Marketing
Why It Matters: The antiquated rules to stop penny-stock pushers in their tracks had kept advisors from sharing real-life stories about how they’ve helped clients live and invest fearlessly. When I’m choosing a service provider, I care 100 times more what other people say about them than what they say about themselves. This is a fantastic move by the SEC that benefits service-oriented advisors. It’s also going to be a big inflection point for many of the advisor marketing solutions out there like Snappy Kraken and FMG Suite.