Question 1

What are clean energy ETFs?

Accepted Answer

Clean energy ETFs invest in companies involved in solar, wind, hydrogen, and other renewable energy sources. They provide exposure to the energy transition megatrend.

Question 2

Have clean energy ETFs performed well?

Accepted Answer

Clean energy ETFs surged in 2020-2021 but corrected sharply in 2022-2023 due to rising interest rates and supply chain issues. Long-term fundamentals remain strong as governments invest in decarbonization.

Question 3

What is the risk of clean energy ETFs?

Accepted Answer

Clean energy ETFs are highly volatile (30%+ annualized) and concentrated in growth companies sensitive to interest rates, subsidies, and regulatory changes. They should be a small portfolio allocation.

Question 4

Which clean energy index is the best?

Accepted Answer

Popular indices include S&P Global Clean Energy, MSCI Global Climate Change, and Solactive Clean Energy. The S&P index is more concentrated while MSCI offers broader climate exposure.

Clean Energy and Climate

Clean Energy and Climate

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Clean Energy and Climate

Clean Energy and Climate