With aggressive global plans to reduce carbon emissions and attain net-zero, clean energy plays are an ideal move in the market. With the help of the U.S. government’s regulatory measures bolstering these initiatives, traders can capitalize further with leveraged exchange traded funds (ETFs).
From renewable energy sources to electric vehicles (EV), government subsidies will help provide funding that will spur the green movement further. Slowly but surely, more consumers will see their electricity powered by more wind and solar energy sources.
“Large U.S. electric utilities with renewable power projects in the works will benefit most in the sector from new federal clean energy funding, analysts and researchers said, with those already at the forefront of developing solar and wind cleaning up,” a Reuters article said.
2 Momentum Plays With Leverage
Clean energy certainly has momentum behind it, whether it’s a short-term play or a long-term growth play. For the former, Direxion Investments has a pair of funds worth considering to capture upside in the green trend.
“A rise in wind and solar production, together with more nuclear electricity, will dominate growth in global power supply over the next three years, curbing the emissions impact of greater energy use, the International Energy Agency said on Wednesday,” another Reuters report said.
For a sector-specific play on green energy, consider the Direxion Daily Global Clean Energy Bull 2x Shares (KLNE). The fund seeks to return 200% of its benchmark index, the S&P Global Clean Energy Index, in a single day.
The index gives exposure to developed market countries whose economic fortunes are in the global clean energy business. These include companies that are involved in the production of clean energy or provide green energy technology and equipment.
The utility sector will also be undergoing a green transformation, relying more heavily on alternative energy sources. As such, traders can take a look at a broader play on utilities with the Direxion Daily Utilities Bull 3X Shares (UTSL), which seeks daily investment results equal to 300% of the daily performance of the Utilities Select Sector Index.
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