There’s a renewed strength in the energy sector. Investors can capitalize on renewables with a pair of Invesco ETFs.
First up, we have the Invesco S&P SmallCap Energy ETF (PSCE). PSCE seeks to track the investment results (before fees and expenses) of the S&P SmallCap 600® Capped Energy Index (the “underlying index”).
The fund generally will invest at least 90% of its total assets in the securities of small-capitalization U.S. energy companies that comprise the underlying index. These companies are principally engaged in the business of producing, distributing or servicing energy related products, including oil and gas exploration and production, refining, oil services, and pipelines.
Additionally, there’s the Invesco DWA Energy Momentum ETF (PXI). The fund seeks to track the investment results (before fees and expenses) of the Dorsey WrightÂ® Energy Technical Leaders Index (the “underlying index”).
The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of at least 30 securities of companies in the energy sector that have powerful relative strength or “momentum” characteristics.
Clean Energy is on the Scene
Oil prices can typically drive an energy fund, but that all may have changed last year when oil prices had a huge sink into negative territory.
When you pop the hoods of both PSCE and PXI, you’ll see clean energy at the top of their holdings. As of January 7, PSCE’s largest holding is Renewable Energy Group Inc and as of January 8, PXI’s top holding is Clean Energy Fuels Corp.
At a 10.69% allocation, you can see why Renewable Energy Group Inc is PSCE’s top holding. The stock has generated over a 230% gain within the past year:
The same can be said for Clean Energy Fuels Corp for PXI. That stock is up an astounding 280% in its one year chart:
For more news and information, visit the Innovative ETFs Channel.