The green energy market is expected to grow significantly with the increasing focus of governments worldwide on decarbonization and on reducing solar and wind energy costs. So, we think investors looking to capitalize on the industry’s growth in a relatively less risky way could bet on popular green energy ETFs — First Trust Global Wind Energy ETF (NYSE:XLE) (FAN) and Global X Renewable Energy Producers ETF (RNRG). So, read on for some details on these funds.Considering the growing intensity of climate change, governments worldwide have been implementing strict policy measures to transition to a green-energy-based sustainable future. The green energy industry is also expected to grow in the near term because the cost of producing and storing solar and wind energy has declined considerably over the past few years.
According to The International Energy Agency (IEA), the renewable energy capacity is set to expand 50% between 2019 - 2024. Furthermore, according to a Facts & Factors report, the global renewable energy market is expected to grow at an 8.3% CAGR between 2021 - 2026.
While it could be challenging to select the best stock in the green energy industry because many highflying stocks don’t possess fundamental strength, we think investors looking to capitalize on the industry’s growth in a less risky way could bet on quality green energy ETFs — First Trust Global Wind Energy ETF (FAN) and Global X Renewable Energy Producers ETF (RNRG).