Can a Move Towards Clean Energy Put Further Pressure on Russia?

With Russia’s invasion of Ukraine, countries affected by the oil supply crunch are looking for ways to alleviate the issue. One way is to refocus on finding more renewable energy sources as they wean themselves off dependence on Russian oil.

Gas prices in Southern California and practically everywhere around the country are feeling the pangs of the Russia-Ukraine crisis. That’s apparent with the pain that drivers are experiencing at the gas pumps.

“Russia’s invasion of Ukraine has again upended global energy supplies, threatening to raise gas prices that are already higher than ever in California,” a Los Angeles Times report notes. “The U.S. oil industry wants President Biden to ease restrictions on drilling, and Europe has already started importing more fossil fuel from the United States to reduce its dependence on Russian supplies.”

A Clean Energy Niche Play

Rather than opt for a broad renewable energy play, investors looking for niche exposure may want to consider clean energy technology. That’s available in the Global X CleanTech ETF (CTEC).

At a 0.50% expense ratio, CTEC seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Global CleanTech Index. The fund invests at least 80% of its total assets, plus borrowings for investments purposes, in the securities of the index and in ADRs and GDRs based on the securities in the index.

The index is designed to provide exposure to exchange-listed companies that are positioned to benefit from the increased adoption of technologies focused on improving the efficiency of renewable energy production and/or mitigating the adverse environmental effects of resource consumption. Overall, the fund gives investors exposure to:

  • High growth potential: CTEC enables investors to access high growth potential through companies at the leading edge of a structural shift in global energy use.
  • An unconstrained approach: CTEC’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
  • ETF efficiency: In a single trade, CTEC delivers access to dozens of companies with high exposure to the clean tech theme.

CTEC Chart

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