President Biden’s State of the Union Re-Emphasizes Renewable Energy

Renewable energy has been one of the mainstays of U.S. president Joe Biden’s agenda, and it continues to be so after his State of the Union speech.

Of course, he had to address fighting inflation, since it’s top-of-mind for many Americans. However, climate change also got its time in the spotlight.

“Second — cut energy costs for families an average of $500 a year by combatting climate change,” Biden said, based on a POLITICO transcript. “Let’s provide investments and tax credits to weatherize your homes and businesses to be energy efficient and you get a tax credit; double America’s clean energy production in solar, wind, and so much more; lower the price of electric vehicles, saving you another $80 a month because you’ll never have to pay at the gas pump again.”

Get Broad, Renewable Energy Exposure in 1 ETF

Exchange traded funds (ETFs) have a plethora of options to play renewable energy. While investors can opt for funds that focus on specific sources, such as wind or solar, they can also get broad exposure in one fund: the Global X Renewable Energy Producers ETF (RNRG).

RNRG seeks to track the price and yield performance of the Indxx YieldCo & Renewable Energy Income 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).

Overall, 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, and governance (ESG) proxy voting guidelines from Glass Lewis.

RNRG Chart

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