Here are three iShares ETFs that will finish 2020 with big gains and could be poised for even more in 2021.
A Clean Energy Play
When you’re up over 140% for the year, you’re clearly doing something right. The iShares Global Clean Energy ETF (ICLN) seeks to track the S&P Global Clean Energy Index, which is designed to track the performance of approximately 30 clean energy-related companies.
Overall, ICLN gives investors access to:
- Exposure to companies that produce energy from solar, wind, and other renewable sources
- Targeted access to clean energy stocks from around the world
- Use to express a global sector view
A Convertible Bond Option
Another fund to consider is the iShares Convertible Bond ETF (ICVT), which is up about 60%. The fund seeks to track the investment results of the Bloomberg Barclays U.S. Convertible Cash Pay Bond > $250MM Index (the “underlying index”).
The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index. The underlying index is a subset of the Bloomberg Barclays U.S. Convertibles: Cash Pay Bonds Index, which measures the performance of the U.S. dollar-denominated convertibles market.
ICVT gives investors:
- Potential for upside participation and downside protection – Convertible bonds are uniquely positioned to offer the growth potential of stocks, but with the income and downside risk management characteristics of traditional bonds.
- A way to guard against rising rates – In rising rate environments, stocks tend to outperform bonds. Since a convertible bond’s price is influenced by the value of its underlying equities, their prices are generally less influenced by changes in interest rates than other fixed income securities.
- Diversified exposure – Convertible bonds have demonstrated low correlations to traditional bond markets and can potentially provide attractive diversification benefits within a broad portfolio.
An Autonomous Driver (of Gains)
Last up is a fund that’s up that’s grown about 60%, the iShares Self-Driving EV and Tech ETF (NYSEArca: IDRV). IDRV seeks to track the investment results of an index composed of developed and emerging market companies that may benefit from growth and innovation in and around electric vehicles, battery technologies, and autonomous driving technologies. Specifically, it tracks the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index (the “Underlying Index”), which measures the performance of equity securities issued by companies that produce autonomous driving vehicles, electric vehicles, batteries for electric vehicles, or technologies related to such products.
IDRV gives investors:
- Access to companies at the forefront of self-driving and electric vehicle (EV) innovation
- Exposure to global stocks along the full value chain of self-driving and EV industries, across sectors and geographies
- Long-term growth with access to companies that can shape the global economic future
For more news and information, visit the Equity ETF Channel.