Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

The Hottest ETFs Of 2019

Published 08/26/2019, 03:16 AM
Updated 07/09/2023, 06:31 AM

  • (1:00) - Invesco’s Solar and Clean Energy ETFs outperformance: TAN & PBW
  • (6:15) - How Much Do Oil Prices Impact Solar and Clean Energy?
  • (10:35) - What Does Investor Interest for ESG ETFs Mean For TAN and PBW?
  • (13:20) - Hoes Do These ETFs Fit Into An Investor's Portfolio?
  • (18:00) - Invesco Solar ETF: TAN
  • (20:25) - Invesco WilderHill Clean Energy ETF (NYSE:XLE): PBW
  • (25:10) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Jason Bloom, director of Global Macro ETF Strategy at Invesco. We discuss solar and clean energy ETFs.

The Invesco Solar ETF (LON:TAN) is the best performing ETF of 2019, up about 60%, and the Invesco WilderHill Clean Energy ETF PBW has gained about 35%.

Enphase Energy (NASDAQ:ENPH) and SolarEdge Technologies (NASDAQ:SEDG) —the largest holdings in these ETFs—have skyrocketed 580% and 124% respectively this year. Are the gains sustainable?

These ETFs are usually quite volatile since their fortunes are tied to government subsidies and oil prices. Is there a correlation between oil prices and clean energy stocks?

The cost of renewable energy generation has been falling in recent years with continued technological innovation, and that has started changing the competitive balance between clean and traditional energy.

According to the investment firm Lazard, wind power is now less expensive to produce than coal or natural gas power, and utility-scale solar plants have become competitive with gas and cheaper than coal.

Why should investors consider solar and clean energy ETFs?

TAN is the only pure-play solar ETF. About 52% of its portfolio is invested in US companies. Top three holdings-- Enphase Energy (ENPH), SolarEdge (SEDG) and First Solar (NASDAQ:FSLR) --account for almost 30% of the portfolio.

PBW holds companies involved in renewable energy generation or conservation, in almost equal weights. Enphase Energy (ENPH), SolarEdge (SEDG) and SunPower (NASDAQ:SPWR) are among its top holdings.

Jason explains how stocks are selected and weighted in these ETFs. We also discuss the role of niche ETFs like TAN and PBW in a portfolio.

Please visit Invesco.com to learn more about these ETFs and other Invesco products.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well



Invesco Solar ETF (TAN): ETF Research Reports

Invesco WilderHill Clean Energy ETF (PBW): ETF Research Reports

Enphase Energy, Inc. (ENPH): Free Stock Analysis Report

SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report

First Solar, Inc. (FSLR): Free Stock Analysis Report

SunPower Corporation (SPWR): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.