ALPS expanded on its thematic exchange traded fund lineup with a strategy that helps investors target the renewable energy category.
On Friday, ALPS launched the ALPS Clean Energy ETF (Cboe: ACES), which has a 0.65% expense ratio.
The ALPS Clean Energy ETF tries to reflect the performance of the CIBC Atlas Clean Energy Index, which is comprised of U.S. and Canadian companies involved in the clean energy sector including renewables and clean technology, according to the fund prospectus.
These companies provide the products and services that enable the evolution of a more sustainable energy sector. The green energy companies are engaged in renewable energy sources, including solar power, wind power, hydroelectricity, geothermal energy, biomass, biofuels, and tidal/wave energy; clean technologies, including electric vehicles, energy storage, lithium, fuel cell, LED, smart grid, and energy efficiency technologies; and other emerging clean energy activities and technologies.
“There is a major transformation underway in the energy sector today. The transition to clean energy is not just about adding more renewables. It’s about cleaner and smarter technologies transforming worldwide production and consumption of energy. This shift is disruptive to traditional sources of energy, but it also presents a compelling and long-lasting investment opportunity for the companies and industries positioned for the change,” according to ALPS.