- (1:10) – Why Has Renewable Energy Seen So Much Growth?
- (5:30) – How Will The Biden Administration Impact This Industry?
- (11:15) – Have These Stocks Gained Too Much Too Fast?
- (16:05) – How Does A Renewable Energy ETF Fit Into An Investor’s Portfolio?
- (20:00) – Invesco Solar ETF: TAN
- (25:20) – Invesco WilderHill Clean Energy ETF & Invesco Global Clean Energy ETF: PBW & PBD
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(33:00) – Episode Roundup:
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In this episode of ETF Spotlight, I speak with Rene Reyna, Head of Thematic & Special Product Strategies at Invesco, about clean energy ETFs.
The Invesco Solar ETF
TAN
was the best performing ETF of 2020, up more than 230%, and the Invesco WilderHill Clean Energy ETF
PBW
gained more than 200%. These ETFs had done very well in 2019 as well, after many years of underperformance.
The cost of renewable energy generation has been falling in recent years with continued technological innovation, and that has started changing the competitive balance between clean and traditional energy.
Policy support also helped green energy. Clean energy investment is now expected to account for half of total investment in the entire energy sector globally, according to UBS.
President Biden has pledged to accelerate the shift to clean energy and rejoined the Paris Agreement on his first day in office. Investors have been pouring money into these stocks and ETFs since Democrats gained control of both the White House and Congress.
TAN is the only pure-play solar ETF. About 47% of its portfolio is invested in US companies.
Enphase Energy
ENPH
, Sunrun
RUN
and SolarEdge Technologies
SEDG
are the largest holdings in the fund.
PBW holds companies involved in renewable energy generation or conservation, in almost equal weights. Tesla
TSLA
, Nio
NIO
and Lithium Americas
LAC
are among the top holdings.
The Invesco Global Clean Energy ETF
PBD
invests in global renewable energy companies, which are equally weighted in tiers. US companies account for about 28% of the portfolio.
Tune into the podcast to learn more about these ETFs. Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email [email protected].
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