Global investment management firm Invesco is a veteran of the ETF game, and offers a plethora of products for investors who want to get knee-deep into everything from fixed income to smart beta. One trend the firm is seeing is more investor demand for funds that focus on renewable energy.
According to a report in Investor’s Business Daily, Invesco has $1.2 trillion in assets under management, which include over $273 billion in ETFs.
“Our belief that clients are best served by a range of active, passive and alternative capabilities continues to grow our firm,” Dan Draper, Invesco’s managing director and global head of ETFs, told Investor’s Business Daily. “As I mentioned, the acquisition of OppenheimerFunds builds on our 2018 purchases of the Guggenheim Investments’ ETF business and Source ETF business in Europe. The economies of scale that these additions have provided have only strengthened our ETF business and increased our ability to help all investors find the outcomes that they seek. Invesco has a long history of introducing innovative, systematic and scalable investment strategies to investors, as well as commercializing these ideas into the marketplace ahead of the competition. The response from investors has been positive.”
“Our three strongest performing ETFs have been funds that really tap into current investor sentiment,” Draper said. “The Invesco Solar ETF (TAN) which rose 66.5% in 2019 on the strong growth of solar related products, as well as the falling costs and consumer predilection toward renewable energy usage. Six companies held by TAN experienced over 100% growth in 2019.”
TAN, which started back in 2008, seeks to track the investment results of the MAC Global Solar Energy Index, which is designed to provide exposure to companies listed on exchanges in developed markets that derive a significant amount of their revenues from the following business segments of the solar industry: solar power equipment producers including ancillary or enabling products.
Other Renewable Energy ETF Options
The sun can’t have all the fun—alternative sources of energy like wind and lithium funds could also experience more growth.
Investors who want to capitalize on increasing reliance on wind as an alternative energy resource, they can look at the First Trust Global Wind Energy ETF (NYSEArca: FAN). The fund seeks investment results that correspond generally to the price and yield of an equity index called the ISE Clean Edge Global Wind EnergyTM Index.
With the growth of electric vehicles, another ETF to look at is the Global X Lithium & Battery Tech ETF (NYSEArca: LIT). LIT, which is nearly nine years old, tracks the Solactive Global Lithium Index. The underlying index is designed to measure broad-based equity market performance of global companies involved in the lithium industry.
For more market trends, visit ETF Trends.