4 Renewable Energy ETFs to thrive under Biden
FAN – Because the incoming Biden administration is expected to shape the economy with a significant focus on clean energy, ETFs such as First Trust ISE Global Wind Energy Index Fund (FAN), Invesco Solar (TAN), ALPS Clean Energy (APES) and Global X YieldCo & Renewable Energy Income (YLCO) that invest in renewable energy holdings should fare well over the long term.
Jan 13, 2021
Joe Biden is all set to swear in as the 46th president of the United States, as declared by the Electoral College last week. The broader markets have been hailing this election outcome, as evidenced by the S&P 500’s and Nasdaq composite’s 1.6% and 3.2% gains, respectively, over the past five days.
One of the biggest themes in the world of thematic exchange-traded funds was renewable energy. Helped by the electric vehicle boom and political outcomes, .
The
ALPS Clean Energy ETF (ACES) emerged as one of this year’s best-performing exchange traded funds, regardless of asset class. That’s saying something when you consider that many other renewable energy funds more than doubled.
ACES follows the CIBC Atlas Clean Energy Index. That benchmark is comprised of U.S.- and Canada-based companies that primarily operate in the clean energy sector. Constituents are companies focused on renewables and other clean technologies that enable the evolution of a more sustainable energy sector.
More than 120 clean energy names now trade on major exchanges, and now have combined market values of $1.5 trillion, according to analysts at Raymon James.
Up a staggering 134.63% in 2020, the the
ALPS Clean Energy ETF (ACES) is easily one of this year’s best-performing non-leveraged exchange traded funds. For investors that missed this year’s move by ACES, many market observers believe there’s more coming in 2021.
ACES follows the CIBC Atlas Clean Energy Index. That benchmark is comprised of U.S.- and Canada-based companies that primarily operate in the clean energy sector. Constituents are companies focused on renewables and other clean technologies that enable the evolution of a more sustainable energy sector.
“Investors should increase their exposure to metal miners, clean energy and Chinese stocks to maximize their returns in 2021, according to Astoria Portfolio Advisors’ John Davi,” reports Fred Imbert for CNBC. “Stocks in these groups have been on a tear this year amid increasing expectations of an economic recovery as well as potential changes to the regulatory environment in energy.”