Clean and Green: Investing in a Renewable Energy ETF

clean and green

More Americans are interested in going clean and green.

According to a November 2016 nationally representative survey of registered voters conducted by the Yale Program on Climate Change Communication:

  • 69% say “the U.S. should participate in the international agreement to limit climate change.”
  • 66% say “the U.S. should reduce its greenhouse gas emissions regardless of what other countries do.”
  • 78% “support taxing global warming pollution, regulating it, or using both approaches.”
  • 80% support policies “providing tax rebates to people who purchase energy-efficient vehicles or solar panels.”

Whether you have strong convictions about protecting the environment, a pragmatic approach to energy trends, or a combination of the two, investing in the Clean & Green ETF might be just what you’ve been looking for.

What is the clean energy sector?

The clean energy sector is made up of companies with a focus on producing energy in a more sustainable way.

This may mean solar, wind, geothermal, and other sustainable energy alternatives or making the fossil fuels industry cleaner and safer for the environment. In short, the clean energy sector is about making the world a greener place.

Investing in renewable energy

Clean & Green is our Stash-ified name for iShares Global Clean Energy ETF. It’s an ETF (exchange-traded fund), and is one of over 30 available investments on Stash. 

This investment tracks an index of clean energy companies. The top holdings in Clean & Green are some of the leading renewable energy companies in the world.

The Unites States and China lead the way – representing more than 50% of market value based on geography*. There’s also geographic exposure to Brazil, Japan, New Zealand, and companies throughout Europe. 

This means that you are investing in 29 companies related to the clean energy sector. While these companies may not yet be household names, many of their products have the potential to become (or already are) everyday necessities.

This industry is growing and changing, which means that the investment holdings could change, too.

Stay balanced

Don’t forget to balance your portfolio. Belief-based investments like Clean & Green are best balanced with a nice solid foundation, like Conservative, Moderate, or Aggressive Mix.

Other belief-based investments on Stash

Do the Right Thing is made up of companies that care about sustainability, human rights, and giving back. Equality Works has exposure to companies that provide equal rights and respect for LGBTQ employees.
Water the World overflows with companies that supply the critical demand for clean water.



Footnotes
*Geographic exposure relates primarily to the domicile of the issuers of the securities held in the fund, added together and then expressed as a percentage of the fund’s total holdings, but, in some instances, can reflect the country where the issuer of the securities carries out much of their business. Information found in this article was retrieved from iShares Global Clean Energy ETF on February 14, 2017.




Disclaimers
This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. StashInvest assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. StashInvest does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis StashInvest uses from third party sources is believed to be reliable, StashInvest does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. StashInvest does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become StashInvest Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.

Clean & Green represents iShares Global Clean Energy ETF (Symbol: ICLN), which seeks to track the investment results of an index composed of global equities in the clean energy sector. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic, or other developments. These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries. Moreover, funds that concentrate investments in a single sector will be more susceptible to factors affecting that sector and more volatile than funds that invest in many different sectors. Diversification may not protect against market risk or loss of principal.