With the exponential growth of the ETF industry, providers are using lower fees to stand out from the masses. Yet ETF investors don’t want to sacrifice performance for a lower cost, making funds like the SPDR S&P Kensho Clean Power ETF (CNRG) appealing.
At a 0.45% expense ratio, CNRG is 17 basis points lower than its category average:
Key features of CNRG:
- Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho Clean Power Index
- Seeks to track an index utilizing artificial intelligence and a quantitative weighting methodology to capture companies whose products and services are driving innovation behind the clean energy sector, which includes the areas of solar, wind, geothermal, and hydroelectric power
- Provides ETF investors an effective way to pursue long-term growth potential by investing in a portfolio of companies involved in the transition to lower emission generating power supply
Impressive Gains for CNRG
CNRG has gained over 160% within the past year.
Check out its top holdings. They consist of ReneSola Ltd. Sponsored ADR, Plug Power Inc. and FuelCell Energy Inc.
These top three holdings have been stellar performers as the clean energy space is getting boost thanks to an incoming Biden administration.
In terms of allocations, ReneSola Ltd. Sponsored ADR constitutes about 9% of the fund, Plug Power Inc. adds 5%, and FuelCell Energy Inc is at 4.4%, as of January 14. CNRG’s top holding, ReneSola, has been making big moves in the solar power space:
“Investors are betting that management can turn the additional funds from the offering into a growing portfolio of solar energy asset,” a Motley Fool article noted. “ReneSola’s management said the funds would be used to grow the project pipeline and for working capital, so the plan is to grow the business. What investors will want to watch is whether signed projects increase over the next few quarters with this expanded balance sheet. We won’t know for a year or two just how profitable projects are going to be, but getting them into the pipeline is the first step for a company like ReneSola right now.”
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