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Clean Energy ETFs to Keep Soaring in Biden Era


  • (1:10) – Why Has Renewable Energy Seen So Much Growth?
  • (5:30) – How Will The Biden Administration Impact This Industry?
  • (11:15) – Have These Stocks Gained Too Much Too Fast?
  • (16:05) – How Does A Renewable Energy ETF Fit Into An Investor’s Portfolio?
  • (20:00) – Invesco Solar ETF: TAN
  • (25:20) – Invesco WilderHill Clean Energy ETF & Invesco Global Clean Energy ETF: PBW & PBD
  • (33:00) – Episode Roundup:


In this episode of ETF Spotlight, I speak with Rene Reyna, Head of Thematic & Special Product Strategies at Invesco, about clean energy ETFs.


The Invesco Solar ETF TAN was the best performing ETF of 2020, up more than 230%, and the Invesco WilderHill Clean Energy ETF PBW gained more than 200%. These ETFs had done very well in 2019 as well, after many years of underperformance.


The cost of renewable energy generation has been falling in recent years with continued technological innovation, and that has started changing the competitive balance between clean and traditional energy.


Policy support also helped green energy. Clean energy investment is now expected to account for half of total investment in the entire energy sector globally, according to UBS.


President Biden has pledged to accelerate the shift to clean energy and rejoined the Paris Agreement on his first day in office. Investors have been pouring money into these stocks and ETFs since Democrats gained control of both the White House and Congress.


TAN is the only pure-play solar ETF. About 47% of its portfolio is invested in US companies.


Enphase Energy ENPH, Sunrun RUN and SolarEdge Technologies SEDG are the largest holdings in the fund.


PBW holds companies involved in renewable energy generation or conservation, in almost equal weights. Tesla TSLA, Nio NIO and Lithium Americas LAC are among the top holdings.


The Invesco Global Clean Energy ETF PBD invests in global renewable energy companies, which are equally weighted in tiers.  US companies account for about 28% of the portfolio.


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