There are a number of reasons to hop on board the environmental, social, and governance (ESG) investing trend, but if you’re still not convinced, how about a 100% return year-to-date? That’s exactly what the SPDR Kensho Clean Power ETF (CNRG) has given investors this year.
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.
Cohesiveness in Achieving Sustainability Goals
The rise of ESG is fast becoming a long-lasting investing trend. The cohesiveness of companies willing to work together to achieve sustainability goals will only help perpetuate the trend.
“Companies working together to achieve their sustainability goals is one thing, but to reach global targets, such as reducing the rise of temperature levels to a maximum of 1.5%, industries will have to come together and work on a united front,” a Forbes article entitled “Redefining ‘Normal’: The Top 5 ESG Trends For 2021” noted.
“For example, the UK has committed to powering all homes via wind power by 2030. To achieve this, a huge amount of infrastructure will need to be put in place – which the government nor one company can achieve alone,” the article said. “The rollout of electric cars faces the same problem. With 2030 edging closer and closer, demand for infrastructure materials and services will grow exponentially. This includes things such as charging stations, roads and wind turbines.”
For more news and information, visit the ESG Channel.