ETF investors may want to start cleaning up their portfolios ahead of the New Year, with a clean energy technology fund in the Global X CleanTech ETF (CTEC) being one bright idea.

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, 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 CleanTech theme.

CTEC Chart

Global Investments in Clean Energy Infrastructure

“Global investors managing nearly $7tn (£5.2bn) of assets plan to almost double their spending on renewable energy infrastructure over the next five years amid deepening concerns over the fossil fuel industry’s climate plans, according to a report,” an article in The Guardian said. “A survey of institutional investors found that they are planning to increase their renewable energy investments from 4.2% of their overall portfolio to 8.3% in the next five years and 10.8% within the next decade to about $742.5bn.”

“The survey of more than 100 investors, representing $6.9tn of assets under management, found that 83% did not believe the plans put forward by oil and gas companies would be enough to meet the Paris climate agreement goals,” the article added.

“We are now at a crossroads and must seize this opportunity to build a global post-pandemic economic recovery that also opens up the renewable energy sector to attract the capital needed to tackle climate change. If we don’t act together, and if we don’t act now, it will be too late,” said Matt Setchell, co-head of Octopus Renewables.

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