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
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.
Recommended reading: Now That’s What I Call an Investment! ETFs Explained.
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.
Keep reading: How to Mix a Classic Investing Cocktail
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.
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.