Democrats appear ready to enjoy majority control of both houses of Congress, with President-elect Joe Biden handing over power to implement policies that would favor certain industries.
Based on Biden’s comments, we can expect more stimulus spending by the federal government – possibly much higher, which means an increase in the Federal Reserve’s purchase of US Treasury notes. This could very well be another fall in long-term interest rates and a continued flow of new money into the stock market.
But what about more specific policy points? If you look at the stock market action on January 6, it is clear that investors expect Biden and Congress to do a lot more for companies producing clean energy, or to enable other companies to do so Develop technology and services.
Clean-energy ETF shares rose on 6 January.
Clean energy ETFs are an easy way to play a long-term trend pushed by governments around the world with diversified portfolios. There are many of them with different areas of focus and varying expenses.
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But what about individual stocks? To put together a list, we looked at five of the largest clean-energy ETFs, listed all their holdings and filtered the highest 20 rated by FactSat-provided sales side analysts (employed by brokerage firms).
There is diversity in space. Some ETFs focus on particular industries, such as wind or solar power generation, and geographic focus varies. We saw five of the largest ETFs in space:
iShares Global Clean Energy ETF ICLN,
– It is the largest clean energy ETF with $ 4.78 billion in assets. It holds a market-capitalization-weighted portfolio of 30 liquid companies involved in the industry. It has an annual expenditure of 0.46% of the property.
Invesco Solar ETF Tan,
– It is a concentrated game with assets of 30 shares, $ 3.63 billion, with a cap-weight of 30%, with the US holding 54% of the portfolio. Its annual expense ratio is 0.69%.
Invesco Wilderhill Clean Energy ETF PBW,
– This ETF has assets of $ 2.17 billion, held by 32 listed companies in the US, with a revised equal weightage. Its expense ratio is 0.70%.
First Trust Global Wind Energy ETF Fan,
– This is another focused ETF, with 60% of its $ 406 million assets allocated to “pure-game” wind-industry companies, with the rest of the portfolio made up of diversified companies involved in wind-power generation. This means that it is owned by some large, traditional power companies, such as Duke Energy Corporation, DUK.
And NextEra Energy Inc., NEE
The portfolio consists of 50 stocks weighted by market capitalization. The expense ratio is 0.62%.
Invesco Global Clean Energy ETF PBD,
– This ETF has $ 301 million in assets and follows the fact that FactSet is “more described for an actively managed strategy than other funds in the segment,” because it is more likely to have stock-price appreciation Follows an index designed to include companies with. It holds about 100 stocks with a modified equal load. Its expense ratio is 0.75%.
One of the challenges in the field of alternative energy is how well stocks are doing – many companies favored by analysts and investors have surpassed consensus targets.
There are a total of five returns of all these ETFs in the last 12 months:
So we listed a list of 160 stocks covered by at least 15 of the five ETFs listed above by 10 analysts with a majority “buy” or equivalent rating, and for the next 12 months. The implicit positive for is the opposite. On consensus goals:
Scroll the table to see all the data. Share prices and targets are in local currencies.
As always, if you look at any individual stock, your next step should be to do your own research to form your opinion about the company’s ability to remain competitive for the next decade or more.
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