ACES Pulls Ahead in Clean Energy Rally | ETF Trends

Clean energy ETFs rallied last week on strong clean energy earnings and Senator Joe Manchin’s support for a $369 billion in clean energy subsidies to be earmarked in the U.S. Inflation Reduction Bill.

The ALPS Clean Energy ETF (ACES) surged 14.43% last week, according to ALPS, outperforming broader growth indexes as well as its clean energy peers on earnings strength from three of its overweight solar holdings. During the same period, the SPDR S&P 500 ETF Trust (SPY) increased 4.15%, and clean energy peers First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) and Invesco Global Clean Energy ETF (PBD) increased 12.73% and 9.53%, respectively, according to YCharts.

The news of U.S. fiscal stimulus possibly being injected into clean energy companies supercharged all seven of ACES’ U.S. and Canada-focused clean energy segments last week, with ACES’ solar segment (27.57% of the fund as of July 29), which gained an astounding 32.28%, leading the pack, according to ALPS.

Solar stocks also had the added catalyst of blowout earnings last week from microinverter name Enphase Energy Inc. (ENPH, 6.52% weight in ACES as of July 29), which jumped over 34% and reported record revenue in Q2 on a 69% rise in European sales, ALPS wrote. 

Also climbing on strong Q2 earnings and bookings guidance last week, First Solar Inc. (FSLR, 5.96% weight in ACES as of July 29) advanced 36.62%, and Sunnova Energy Intl. (NOVA, 2.20% weight in ACES as of July 29) gained 36.73%, according to ALPS. While component supply shortages are still an issue, the industry is now mostly able to satisfy record demand.

ACES’ other top-performing segments, lifted by the news of the U.S. Inflation Reduction Bill, included fuel cell/hydrogen (7.26% of ACES as of July 29), and energy management and storage (4.11% of ACES as of July 29), rising 19.27% and 18.32%, respectively, according to ALPS.

Additional notable gainers in ACES included biofuel producer Aemetis Inc. (AMTX, 0.19% weight in ACES as of July 29) rising over 46% last week, renewable infrastructure developer Infrastructure and Energy Alternatives (IEA, 0.35% weight in ACES as of July 29) gaining 35.38%, and wind blade producer TPI Composites Inc. (TPIC, 0.51% weight in ACES as of July 29) returning 31.55% last week after the Biden administration was set to push an offshore wind development program, ALPS wrote.

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