Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Best Returns of the Year Lure ‘Believers’ to Clean-Energy ETFs

Stock Markets Oct 01, 2019 04:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Best Returns of the Year Lure ‘Believers’ to Clean-Energy ETFs
 
STT
-4.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FSLR
-3.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XLE
-2.74%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Bloomberg) -- Exchange-traded fund investors are finally paying attention to clean-energy stocks thanks to a market-beating year.

The $439 million Invesco Solar ETF, known by its ticker TAN, has returned 58% this year, outperforming all other unleveraged ETFs in the U.S., according to data compiled by Bloomberg. That’s spurred the most demand for the fund in five years, with more than $60 million flowing in last quarter.

Despite a recent bout of weakness, clean-energy stocks have been on a tear as tariffs imposed by President Donald Trump on imported solar equipment gradually decline. Meanwhile, the outlook for greater use of renewables has also improved, further burnishing the appeal of companies like First Solar Inc (NASDAQ:FSLR)., one of TAN’s largest holdings.

“It’s finally gaining some believers,” Bloomberg Intelligence analyst Eric Balchunas said of the ETF.

Two other clean-energy funds are also among the year’s top 10 performers through Sept. 30: The Invesco WilderHill Clean Energy ETF (NYSE:XLE) and State Street Corp (NYSE:STT).’s SPDR S&P Kensho Clean Power ETF both returned 38%.

But price gains aren’t solely responsible for investor interest. Renewables have become a mainstream energy source, supplying more power to America’s grid than coal for the first time ever in April. Solar and wind are now the cheapest forms of power in two-thirds of the world. Meanwhile, the Solar Energy Industries Association recently said the U.S. pipeline for utility-scale projects had reached 37.9 gigawatts, a record.

In fact, newcomers to clean energy missed much of the sector’s advance this year, with TAN’s performance in the first half of 2019 significantly outpacing its return in the third quarter.

However, it’s easy to understand buyers’ caution when you look at the fund’s history: Despite this year’s advance, TAN has lost 85% since it began trading in April 2008.

“Because there’s some maturation of the industry, that could reduce some of the volatility going forward,” said Todd Rosenbluth, director of ETF research at CFRA Research. “While we think prospects for many of these companies are favorable, these products are not for the faint of heart.”

Best Returns of the Year Lure ‘Believers’ to Clean-Energy ETFs
 

Related Articles

Faraday Future appoints Xuefeng Chen as global CEO
Faraday Future appoints Xuefeng Chen as global CEO By Reuters - Nov 28, 2022 2

(Reuters) - Electric-vehicle startup Faraday Future Intelligent Electric said on Monday it has appointed Xuefeng Chen as global chief executive officer, sending shares up 1.4% in...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email