ETF Trends
ETF Trends

The Group of Seven developed industrial nations have agreed to significantly cut down fossil fuel consumption in a bid to diminish harmful greenhouse gas emissions, potentially setting the stage for renewable energy and sector-related exchange traded funds.

Those who are interested in investing in clean and renewable energy technologies can take a look at broad ETF options. For instance, the PowerShares WilderHill Clean Energy Portfolio (NYSEArca: PBW) and First Trust NASDAQ Clean Edge Green Energy Index Fund (NasdaqGS: QCLN) focus on U.S. clean energy companies, while the Market Vectors Global Alternative Energy ETF (NYSEArca: GEX) and PowerShares Global Clean Energy Portfolio (NYSEArca: PBD) cover global companies. [Improving Technology, Falling Costs Lift Clean Energy ETFs]

These ETFs include a range of alternative energy firms, including big names like Tesla (NasdaqGS: TSLA), SunEdison (NasdaqGS: SUNE) and SolarCity (NasdaqGS: SCTY).

The global clean energy ETFs include many international names, but they also have a significant U.S. tilt. For instance, GEX tracks 60.0% U.S., along with China 11.6%, Denmark 11.4%, Spain 3.9%, Italy 3.1% and Japan 3.0%, among others. PBD includes U.S. 31.7%, followed by China 18.1%, Taiwan 5.4%, Hong Kong 5.2%, Denmark 5.2% and Germany 5.1%.

Potentially fueling greater interest in renewable technologies, leaders of the U.S., Germany, France, the U.K., Japan, Canada and Italy said they supported reducing emissions by 40% to 70% by 2050 from 2010 levels, the first precise long-term target, the Financial Times reports.

“Today, for the first time ever, G7 leaders have rallied behind a long-term goal to decarbonise the global economy,” Jennifer Morgan, director of the global climate program at the World Resources Institute, said in the FT article. “This long-term de-carbonization goal will make evident to corporations and financial markets that the most lucrative investments will stem from low-carbon technologies.”

Showing Page 1 of 2