Plug Into Plug Power: 'CNRG' ETF Holding Up Nearly 1,800%

The future looks bright for clean energy company Plug Power, which is the second largest holding in the SPDR S&P Kensho Clean Power ETF (CNRG). The company just raised its guidance for 2021, which should only help boost CNRG further.

“Plug Power (PLUG) raised 2021 guidance and a key 2024 target Tuesday, then announced a $1.5 billion secondary stock offering after the close. Plug Power stock fell late after closing sharply higher,” an Investor’s Business Daily article noted. “The company said it had exceeded its 2020 gross billings targets and is raising its outlook for 2021 to $475 million from a prior outlook of $450 million. Looking further ahead, management raised its 2024 gross billings target to $1.7 billion, up 40% from its prior outlook.”

CNRG seeks to provide investment results that correspond generally to the total return performance of the S&P Kensho Clean Power Index. Under normal market conditions, the fund generally invests at least 80% of its total assets in the securities comprising the index, which 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. One of the highlights of CNRG is its low expense ratio (0.45%) relative to other funds within its category.

Here are some features of 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
  • Seeks to track an index utilizing artificial intelligence and a quantitative weighting methodology to capture companies whose products and services are driving innovation behind the clean energy sector, which includes the areas of solar, wind, geothermal, and hydroelectric power
  • Provides ETF investors an effective way to pursue long-term growth potential by investing in a portfolio of companies involved in the transition to lower emission generating power supply

CNRG Chart

Plugging In Internationally

Plug Power, which comprises about 5% of CNRG, is looking to expand its operations into international territory. According to the Investor’s Business Daily article, Plug Power “has been expanding operations abroad so far this year.”

“Earlier this month South Korean conglomerate SK Group announced a $1.5 billion investment into a joint venture with Plug Power to expand hydrogen energy in Asia,” the article noted. “Renewable energy stocks have been on the rise following President Joe Biden’s inauguration last week. Biden has already signed an executive order to rejoin the Paris Climate Agreement.”

The stock has skyrocketed almost 1,800% the past year:

PLUG Chart

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