Renewable energy funds like ALPS Clean Energy ETF (ACES) have not been immune to recent weakness in the broader market, but some market observers the pullback is an opportunity for investors that missed last year’s rally in clean energy assets.

ACES follows the CIBC Atlas Clean Energy Index. That benchmark is comprised of U.S.- and Canada-based companies that primarily operate in the clean energy sector. Constituents are companies focused on renewables and other clean technologies that enable the evolution of a more sustainable energy sector.

ACES 6 Month Total Return

“Some analysts are changing estimates based on the stock action. Few think that the big names in renewable energy are a screaming buy right now, but they have become less negative — and see the possibility for a return to growth,” reports Avi Salzman for Barron’s.

ACES Synergy Is Still Going Strong

Adding to the case for ACES is that clean energy still enjoys significant political support. Following the $1.9 trillion stimulus effort, the Biden Administration is expected to target a $2 trillion infrastructure bill that’s widely expected to be heavy on renewable energy initiatives.

“Others are also becoming more positive on the industry. As the overall market starts to favor value names over speculative growth stocks, J.P. Morgan analyst Mark Strouse suggested that investors look to renewables companies with high margins and free cash flow,” according to Barron’s.

The J.P. Morgan analyst notes that renewable energy pullbacks of the current magnitude often lead to buying opportunities.

“In our experience a pullback of this magnitude is likely to have a lasting impact on risk appetite, reflected in lower forward multiples and/or a higher discount-rate for a future-dated cash-flow in pegging value,” he said in a note.

See also: Why Wall Street Is Smitten with ACES ETF Holdings

Clean energy has sometimes been more talk than action in the past. This time things are different. The subsidies and stimulus plans have been in place, but there’s a cost inflection. The space has also become become a notably respectable aspect from a business perspective, which is key.

Other alternative energy ETFs include the First Trust Global Wind Energy ETF (FAN) and the SPDR Kensho Clean Power ETF (CNRG).

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.