A Clean Energy ETF Is Energizing Renewables Investors | ETF Trends

U.S. investor interest in renewable energy sources continues to trend higher midway through 2021, energizing assets like the Global X Renewable Energy Producers ETF (RNRG).

“The United States has claimed the top spot on the latest IHS Markit Global Renewables Markets Attractiveness Rankings mainly on account of sound market fundamentals and the availability of an attractive—though phasing down—support scheme,” an OilPrice.com article said.

“The survey tracks attractiveness for investment for non-hydro renewables such as solar PV, offshore wind, and onshore wind,” the article added. “The ranking evaluates each country based on seven subcategories that include market fundamentals, current policy framework, infrastructure readiness, investor friendliness, revenue risks, and return expectations, easiness to compete, and the overall opportunity size for each market.”

RNRG seeks to track, before fees and expenses, the price and yield performance of the Indxx YieldCo & Renewable Energy Income Index. The fund invests at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index.

The underlying index is designed to provide exposure to publicly traded companies that produce energy from renewable sources, including wind, solar, hydroelectric, geothermal, and biofuels (including publicly traded companies that are formed to own operating assets that produce defined cash flows). RNRG’s expense ratio comes in at 0.65%.

RNRG gives investors:

  • High Growth Potential: RNRG enables investors to access high growth potential through companies at the leading edge of a structural shift in global energy production.
  • Renewables Exposure: The ETF is a targeted, thematic play on renewable energy producers.
  • A Conscious Approach: RNRG incorporates the environmental, social, & Governance (ESG) proxy voting guidelines from Glass Lewis.
  • Strong Performance: The fund is up 16% over the past 12 months.

RNRG Chart

The Power of Wind and Solar Energy

Wind and solar power are likely dominate the market, according to IHS Markit. The world’s two top economies will see the most use out of the two techologies.

“Onshore wind, offshore wind and solar PV are set to account for over 80% of all new power generation capacity additions globally to 2030,” IHS Markit said. “While the lion’s share of 2020 capacity additions came from just two markets–China and the United States–close to 50 markets recorded double digit growth in the past year.”

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