The below link to etf.com has several data sets, including their list of 19 (scroll down the page). The table data is set by AUM, but may be sorted by selecting 3 month return, etc.
Aside from a particular area (solar, wind, water...whatever) We consider AUM to be of importance, as some of the eft's have very low AUM. Being able to trade these etf's may be thin for low AUM issues, and/or have larger spreads.
We purchased a small amount of
TAN (solar) when Putin decided to play war in Ukraine.
Any of these sectors may have their own problems for profit; being the whims of the markets, supply chain, legislation and monetary support from countries and also that; share buys/sells and/or options trading by large investment houses (hedge funds, etc.) may affect performance.
For us, less than a 5% position doesn't add enough meaningful value to the overall portfolio. This doesn't mean an immediate 5% + buy, but to obtain this point within a short time frame via "dollar cost averaging". Generally, we buy or sell in a least 5% positions. The mind set being; that we feel comfortable with this choice........OR one should likely not consider the transaction at all.
As to
TAN in particular, this etf has held up well in 2022, considering the performance damage done in many areas of the overall markets.
Have you investments in this area? What do you like or are watching???
Note: there may be other choices not on the short list in the link.
19 renewable clean energy etf listThank you for your input.
Remain curious,
Catch
Comments
This may or may not be of help but I have traded in and out of both ICLN and TAN over the past two years depending on the appeal of of 'clean energy' within the energy sector. I currently hold 3 individual equities in the solar realm and have held them well over 2 years. I hope that you enjoy rollercoasters.
I agree that this sector has a lot of price swings. And not unlike other sector plays, the etf's being introduced has expanded a lot. My interest and use of etf's for sector investing goes back to the early '80's of using Fidelity select mutual funds.
From a various mix of sectors (wide and narrow) I watch, ICLN and TAN were the only 2 today that closed positive, +.36% and +.56%.
Then there's a whole slew of other etf's that are somewhat in the ballpark but with their own specialty themes, not only renewable energy, like GBLD, TEMP, ERTH, GRID, SMOG, and CRBN. None of them even come close to passing the volume test for me, though. If there was still an "ETF deathwatch" site, they'd probably be on it.
Another factor to consider is how you feel about China. It can be a large part of some of these funds. My wife wanted a pure solar play, so she has TAN, which is around 27% China/Hong King.
The other alt/greens we ended up with are PBD And ICLN Taken altogether, these stakes are under 5% of our portfolios. I look at them as long term growth flyers at best, or extensions of our holdings in utilities and infrastructure at worst.
Holding overlap has never been something I worry about. If there is enough differentiation between the theses then individual companies will come and go in larger or smaller bites.
First bought these for our portfolios when they were priced rather a lot higher. I bought more of them in early July 2022 when they were rather a lot lower.
If you add in our water ETF's, then we're over 5%. I look at water as an environment-influenced opportunity going forward.
In answer to @Catch22 …. NO. Have never owned a focused fund or company in the greenhouse area. However, do allocate a small sum 7-9% of portfolio to natural resource producers. In addition a very small hold on GLTR (mostly gold & silver, but smaller allocations to platinum & palladium). These market segments are so volatile that my investments in them are quite diverse and not very large on an individual basis. But thanks for the provocative question.
We do have a major lithium source in the U.S., apparently under development -- the Salton Sea in S. Cal., one of the weirder geographic features on the continent.
Not enjoying that ride, Derf
Added: If you like green,
take a look at Mr. Market
I ( or my kids IRAs) have had positions in TAN LIT PBD PHO ( water) and FCX ( Copper) for years. My son wanted only clean energy and "green" investments so even with the recent "swoon" some of his ETFs are up 250% in the last eight years since we started his accounts.
I recently spent a fair amount of time looking for actively managed funds in "climate change" and found several interesting ideas. It is hard to search for "climate Change" as it is not a fund category that I am aware of, but M* classifies most funds as " natural resources" and you can skim their names pretty quickly. Another way is to look for concentrated positions in some of the usual companies, or other funds that hold significant positions in common with some of the bigger inaccessible funds like GCCHX.
Most funds are only recently organized, but NALFX has a long track record. GMOs Climate Change Fund GCCHX has been in business since 2017 and provides a good comparison, although it has a $5,000,000 minimum. ( Interestingly NALFX beats it with a bit more volatility).
Most are less than a year old.
I nibbled also at RKCIX ( Rockefeller management trying to make up for JD's sins), and GCEBX ( has a bit of an income focus so is less volatile) and NETZ (an ETF run by "Engine no 1, the group that forced XOM to the climate change table).
Other things to think about are materials that will go up in price as demand increases like rare earths (REMX) and "Green minerals" ( GMET). Huge quantities of Cobalt, etc will be needed to transition to carbon neutral. Carbon credits are another idea (KRBN), as is timberland ( hard to find for individuals)
I was thinking of putting this together in a Commentary piece, but my skills are limited to typing so I dumped a lot of these ideas into just a word document.
Ford may be charging more for a consumer durable. OTOH, they just signed a big deal with DTE Energy that will result in 650 MW of new solar energy generation in Michigan by 2025.
https://www.freep.com/story/money/cars/ford/2022/08/10/ford-dtes-solar-deal-help-automaker-go-carbon-free-michigan/10282086002/
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Copper and platinum
Think these maybe very good for long terms