Are you looking for the top exchange-traded funds (ETFs) to invest and profit from climate change? Then we've outlined some of the best offered on stock exchanges. These ETFs are quite popular and they keep track of companies in the energy industry. Also, these ETFs focus on companies that offer economic value while at the same time, do not impact negatively on the environment and public health.
Accordingly, some ETFs to invest in 2020 and make a profit from climate change include:
1. Invesco WilderHill Clean Energy ETF (PBW):
A top ETF you can invest in is the Invesco WilderHill Clean Energy ETF. The ETF keeps track of the WilderHill Clean Energy Index (Index), which is made up of companies that are publicly traded in the United States. These companies are focused on the Clean Energy sector - they benefit from using cleaner energy, and zero-CO2 renewables.
What's more, this ETF centers on domestic names in the energy sector as well as conventional stocks. In the case of the latter, this includes SolarEdge Technologies (SEDG), and hydrogen fuel cell company Bloom Energy Corp. (BE). Some of the Fund's top holdings include Bloom Energy Corp, Renewable Energy Group Inc, Tesla Inc, and Veeco Instruments Inc.
2. iShares Global Clean Energy ETF (ICLN):
iShares Global Clean Energy ETF is another ETF that is incorporated in the US. This index keeps track and seeks to replicate the performance of the S&P Global Clean Energy Index. Also, it centers on 30 global publicly traded companies that are involved in solar, wind and other renewable power sources. It targets access to clean energy stocks worldwide.
The ETF holds industrial, technology, energy, and utility stocks that are often called mid-cap. The Fund's top holdings include Siemens Gamesa Renewable Energy, Vestas Wind Systems A/S, SolarEdge Technologies Inc, Xinyi Solar Holdings Ltd, and Meridian Energy Ltd.
3. Invesco Solar ETF (TAN):
Invesco Solar ETF is based on the MAC Global Solar Energy Index. The index is made up of several companies in the solar energy industry such as Enphase Energy (ENPH), First Solar (FSLR), and Sunrun (RUN). There is also a heightened investor interest in this fund given that it manages almost $500 million in assets. It also has a daily volume of about 300,000 shares.
On the other hand, this investment focuses on a particular sector, which makes it more susceptible to market volatility. That aside, the Fund's top holdings include SolarEdge Technologies Inc, First Solar Inc, Xinyi Solar Holdings Ltd, Enphase Energy Inc, Sunrun Inc, Encavis AG, and Atlantica Yield PLC.
4. First Trust ISE Global Wind Energy Index Fund (FAN):
First Trust ISE Global Wind Energy Index Fund keeps track of an index of companies that are focused on the energy industry. The Fund saves 60% of its weighting for the wind industry and 40% to 'diversified sector' companies in the industry. On the other hand, it is worth noting that there are only a few companies targeted at the wind industry which may present fewer options to investors.
Over and above that, the Fund's top holdings include Vestas Wind Systems A/S, Siemens Gamesa Renewable, Energy SA, Northland Power Inc, Orsted A/S, Pattern Energy Group Inc Class A, and Boralex Inc Class A.
5. Invesco Cleantech ETF (PZD):
The Invesco Cleantech ETF is based on the Cleantech Index™ (Index). The ETF is targeted at companies who generate 50% of their revenue from cleantech businesses. The latter are businesses that offer knowledge-based products or services that are of economic value. Likewise, a cleantech business offers environmentally conscious products and services that do not also impact the public's health negatively.
And like the TAN ETF, it is worth mentioning that PZD is also susceptible to market volatility since it targets a particular sector. The Fund's top holdings include Umicore SA, Kingspan Group PLC, Vestas Wind Systems A/S, Autodesk Inc, ABB Ltd, ANSYS Inc, Siemens Gamesa Renewable Energy, Eurofins Scientific SE, and Schneider Electric SE.
These are the top ETFs to invest in to profit from climate change. Besides, if you prioritize environmental friendliness, then these ETFs will ensure you invest in companies that do the same.