Clean Energy ETFs Riding Higher

Clean energy ETFs have been riding higher of late. Most of the products, in fact, have crushed the S&P 500-based fund SPDR S&P 500 ETF (NYSE:SPY) (ASX:SPY) (up 4.7% in the past one month (as of Sep 23, 2019)).

This happened despite President Trump’s apparent choice against promoting green energy. In his latest budget blueprint for 2020, he substantially reduced new spending on federal programs for advancing clean energy.

Inside the Rise of Green Energy

Clean energy jobs are thriving in the United States. Two sectors in particular — energy storage and clean vehicles — witnessed a considerable increase in jobs from the last year, “driven by growing consumer electric vehicle adoption, state expansions of charging infrastructure, falling battery prices and increased solar-storage installations.”

Overall, clean energy jobs expanded 3.6% in 2018, with wind employment flourishing. San Francisco municipal utility plans to focus on 100% renewable energy, which would necessitate more construction of solar and wind facilities.

There is news that some states, including California, are using solar subsidies to boost solar power adoption. California government, in fact, mandated all new homes built starting in 2020 to have solar power.

Plus, demand for solar panels is rising as “many U.S. solar companies are hoarding panels to take advantage of the full solar subsidy that is set to step down beginning next year.”

Against the global backdrop, China is a major player building a green environment. In 2018, China invested around $100 billion. Almost half of the European Union’s (EU) 28 member states have already reached or are about to touch their 2020 renewable energy targets.

If these were not enough, a rise in crude oil prices on Saudi oil facilities attacks disrupted 5% of the world’s global supply. As oil prices jumped, investors probably have turned to alternative energy thinking that this group could also be a likely gainer (read: Safe Haven ETFs to Grab Amid Middle East Tensions).

Clean Energy ETFs in Focus

Invesco WilderHill Clean Energy ETF (NYSE:XLE) PBW – Up 9.2% in the past month

SPDR S&P Kensho Clean Power ETF CNRG – Up 7.7%

VanEck Vectors Low Carbon Energy ETF (TASE:SMOG) – Up 7.7%

First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN – Up 7.1%

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (LON:GRID) – Up 7.0%

Invesco Global Clean Energy ETF PBD – Up 6.9%

iShares Global Clean Energy ETF ICLN – Up 6.5%

ALPS Clean Energy ETF (BO:ACES) – Up 5.5%

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