PBW's 34% Year-to-Date Gain Masks a Brutal Five-Year Pattern Every Rate Cycle Repeats
A $10,000 stake in the Invesco WilderHill Clean Energy ETF (NYSEARCA:PBW) at Thursday's close was worth ~$8,920 by Friday's close, and the cause traces directly to a sharp move in two-year Treasury yields rather than to anything inside a single clean energy company.
PBW: Clean Breakout With Clean Energy, Pure Valuation (Upgrade)
I upgrade Invesco WilderHill Clean Energy ETF to 'Buy,' citing strong momentum and compelling valuation. PBW has returned 95% over 16 months, outperforming the S&P 500 by 70 percentage points. The ETF trades just under 20x earnings with a long-term EPS growth rate of 23%, yielding a PEG below 1.
Are Green ETFs in the Crosshairs? Navigating the Rare Earth Supply Shock
China's rare earth export curbs threaten the clean energy supply chain, but global exposure helps ETFs like PBW, FRNW, and ICLN stay resilient.
Clean Energy ETF (PBW) Hits New 52-Week High
Clean Energy ETF PBW hits a 52-week high, surging about 121% from its low as industry momentum and easier Fed policy fuel gains.
PBW: Stay Away From This ETF
I am downgrading the Invesco WilderHill Clean Energy ETF due to concerns with its composition and the overall challenges in the clean energy sector. The ETF's stock selection is based on non-financial criteria like relevance to climate change and biodiversity, leading to a seemingly arbitrary mix of companies. The fund's valuation metrics are poor, with negative P/E ratios and return on equity, indicating unprofitability and poor performance across various timeframes.
PBW: Clean Energy Stocks Catch A Post-Debate Bid, Caution Warranted
The Invesco WilderHill Clean Energy ETF remains in a protracted downtrend since early 2021, despite a potential Harris win boosting clean energy stocks today. PBW's valuation has become more expensive on a P/E basis, with a high expense ratio of 0.65% and poor technical indicators, including high volatility and a bearish trend. The ETF's price-to-sales ratio is low, but its price-to-earnings ratio is not attractive, and it carries elevated small-cap risk.
