![]() CTEC’s management expense is 0.5 per cent while SMOG’s MER is around the industry average at 0.62 per cent, says Lara Crigger, editor-in-chief at ETF Action. It also has among the lowest MERs in the sector at 0.46. ICLN, meantime, is up about 98 per cent year-to-date. SMOG’s price has increased by about 95 per cent so far this year “and onereason is Tesla is its largest holding,” Mr. CTEC, up by about 20 per cent since it launched in October, invests only in clean energy technology companies.Īnother is the VanEck Vectors Low Carbon Energy ETF (SMOG-A) that “sits in the middle” with about 20 per cent of AUM involved in energy production, he says. Straus of National Bank says, with ICLN on one end and Global X CleanTech ETF (CTEC-Q) on the other. “When it comes to renewable energy ETFs, there’s a spectrum of investment,” Mr. With about US$3-billion in assets under management (AUM), it offers a blend of clean energy producers – about 55 per cent of holdings – and companies involved in technologies and equipment for clean energy production. That’s certainly the case for the sector’s largest, iShares Global Clean Energy ETF (ICLN-Q). “It’s been a hell of a year for green energy ETFs,” says Tim Nash, founder of Good Investing, a Toronto-based financial planning firm specializing in sustainable investment. Many have posted much higher returns year-to-date than the Canadian options. market has about a dozen renewable energy ETFs from broad-based global funds to those narrowly focused on solar and wind. Green options aplenty south of the border 7 compared with about 13 per cent for XUT. ZUT has outperformed XUT so far this year, returning about 23 per cent as of Dec. Their portfolios also include Canadian renewable companies among top holdings, including Brookfield Renewable Partners LP and Northland Power Inc. Both have management expense ratios (MERs) of about 60 basis points – similar to most clean-energy themed U. Another is the iShares S&P/TSX Capped Utilities Index ETF (XUT-T), with about 55 per cent exposure. The Canadian market currently includes traditional utilities ETFs with significant holdings in renewables.īMO’s Equal Weight Utilities ETF (ZUT-T) offers the highest exposure with about 66 per cent of its holdings involved in clean energy, Mr. In the meantime, investors seeking to go green still have plenty of choice: Homegrown ETF choices Harvest ETFs filed a prospectus in early December for its Clean Energy ETF (HCLN), which should list in Canada soon. Straus notes the Canadian market has no ETFs entirely focused on renewables, for the time being. Still, investors seeking Canadian-listed renewable energy ETFs have few options. Returns may be very well, 200% in a few years has been possible in recent years.Prices of some pure-play clean energy ETFs have posted triple-digit returns so far this year, with Canadian companies among their top holdings. It is a physical ETF so iShares is buying the underlying stocks. Then Enel Green Power follows and China Everbright, each with a share of 5%. The largest company is First Solar with 6%. 30 global companies are included.Ĭhina and the US lead the pack with a share of 27% each. This iShares Clean Energy ETF is tracking the S&P Global Clean Energy Index. So in upcoming countries one does not have to invest that largely anymore to supply local people with energy. Large investments in infrastructures and high voltage towers are not necessary. Solar and wind energy also has the potential to be a very local source of energy. You may expect more from environmental regulations and the will of the consumer. So this clean energy ETF will not profit from the depletion of natural sources. Today there seems to be more oil around than ever before. 40 years ago they told me at school that oil would be run out in 25 years. The use of oil, gas and coal will decline as these are not inexhaustible sources. Governments are stepping up environmental regulations in order to make this world cleaner. A clean energy ETF for sure has a vibrant future ahead. Extracting energy from sun and wind is not a play-thing from the alternative community anymore.
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