As Renewable Energy Continues to Thrive, Bask in This Solar ETF

A push toward more renewable energy use is allowing solar-powered projects to thrive, as well as exchange traded funds (ETFs) that focus on the like, such as the Global X Solar ETF (RAYS).

Even during a pandemic-ravaged year, 2020 saw a surge in solar-powered projects. RAYS seeks to invest in companies positioned to benefit from the advancement of the global solar technology industry.

“Despite the pandemic, the United States built more utility-scale solar power plants in 2020 than any other year, with Texas leading the way,” said a article. “All those new solar plants added up to 9.6 gigawatts of renewable energy added to the U.S. power grid, bringing the nation’s total solar capacity to 48 gigawatts. That’s enough to allow further retirements in the nation’s coal fleet, which had 223 gigawatts of capacity in 2020.”

Moreover, a number of new projects have sprung up this year and should continue to do so next year amid the ongoing pandemic recovery.

“It’s hard to know the counterfactual, perhaps without the pandemic it would have been a lot more extraordinary,” said Mark Bolinger, a research scientist at Berkeley Lab. “Some of those projects got bumped into 2021 or 2022. But it still ended up being a record year.”

RAYS gives investors:

  • High growth potential: Forecasts suggest that the global market for solar energy could reach $200 billion by 2026, quadruple the market size in 2019.
  • Advancing clean technologies: Solar is the most abundant energy resource on earth. Increased adoption of solar technologies could potentially help address global power insecurity and minimize the adverse environmental impacts of fossil fuel consumption.
  • Conscious approach: RAYS incorporates environmental, social, governance (ESG) screens and follows ESG proxy voting guidelines to affect positive change alongside financial returns.

Strong Debut for RAYS

RAYS couldn’t have come at a better time. With a trillion-dollar infrastructure plan in play at Congress, money could be flowing into more renewable energy projects, which would include more solar power usage.

Relatively speaking, the prices of solar power materials has gone down as of late despite the rising tide of inflation. That said, more solar projects could be underway in the coming years, especially if the infrastructure plan pushes its way through Congress and becomes law.

Either way, RAYS looks to prosper as a strong growth play. It’s already started strong out the gates after debuting in September; the fund is already up 11% year-to-date.RAYS ChartFor more news, information, and strategy, visit the Thematic Investing Channel.