The Department of Energy (DOE) could be a key mover for clean energy ETFs like the SPDR Kensho Clean Power ETF (CNRG).
CNRG seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho Clean Power Index. Under normal market conditions, the fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index.
The index is designed to capture companies whose products and services are driving innovation behind clean power. The fund may invest in equity securities that are not included in the index, cash and cash equivalents, or money market instruments, such as repurchase agreements and money market funds.
CNRG ended 2020 up over 100%. The fund has been on a steady upclimb since the pandemic shook the markets last year.
DOE Slashing Emissions in 2021?
The DOE will play a pivotal role for clean energy in 2021 and beyond. Favorable policies pushed through Congress (hopefully a less divisive one with respect to clean energy) can only help the case of CNRG.
A Politco article notes that the “Energy Department will play a key role in helping slash emissions from the transportation sector, the largest contributor to climate change. Electrifying the nation’s fleet of vehicles would represent one of the most seismic market and technological upheavals in recent history. And the department will also have a major role to play in stanching emissions from buildings, appliances and the electric power sector.”
“This situation does feel eerily reminiscent of what it was like during the Obama administration,” said Sanjay Wagle, who once served in former president Barack Obama’s DOE and is now managing director of investment firm The Lightsmith Group.
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