Amidst a global renewable energy revolution that has seen solar and wind overtake coal as the world's top electricity source, clean energy ETFs are struggling to attract assets despite posting double-digit gains this year. The ALPS Clean Energy ETF (ACES) has returned 31.9% year-to-date, according to ETF Database.
Despite policy headwinds, surging AI-driven power demand and falling renewable costs are powering clean energy ETFs higher.
A new U.S.-China rare earth deal lifts hopes for clean energy ETFs, like ICLN and PBW, as supply chains stabilize and investor optimism returns.
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The fund is designed to cater to investors interested in contributing to and benefiting from the clean energy sector, which includes renewable energy and clean technology. By committing at least 80% of its net assets into securities that form part of the underlying index, this fund offers a structured approach towards investment in the clean energy domain. The underlying index itself is based on a rules-driven methodology crafted by CIBC National Trust Company, known as the "index provider." This strategy aims to furnish investors with access to a diversified pool of U.S. and Canadian companies that are key players in the advancement of clean energy. Although the fund operates with a non-diversified status, it underscores a focused approach towards investment in an area that is rapidly gaining momentum amidst growing environmental concerns.
The primary service of the fund revolves around investing in securities that are part of the selected index, representing significant U.S. and Canadian companies in the clean energy sector. These investments are aimed at capturing the growth potential of renewables and clean technology, offering investors a targeted opportunity within this dynamic industry.
Through its specialized investment strategy, the fund provides investors with exposure to the clean energy sector. This encompasses a wide array of companies involved in renewable energy sources and technologies that promote energy efficiency and lower carbon footprints. The fund's focus on this sector aligns with the growing global trend towards sustainable energy and offers the potential for impactful investment.