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Investment Profile

Investment Profile: Clean & Green

Holdings

First Solar Inc., China Everbright, Contact Energy, and more

Managed by

iShares
Ticker: ICLN

Risk Level

Moderate

Risk Level

Moderate

If you think we’ve made a mess of our environment, and it’s time to do something about it, take a look at Clean & Green. On a global basis, demand for energy is growing quickly. Today, we meet most of that demand with oil, coal and gas (which come from digging up dead animals and plants, hence the term fossil fuels). That’s a big problem, because fossil fuels contribute to global warming and pollution, and because they’re running out. Energy from clean, renewable sources can help, and producing that energy is a big, growing business. If you like the idea of investing in renewable energy companies, Clean & Green may be for you. It’s just one of the “I believe” investments on Stash, and can be a complement to a well diversified portfolio.

What’s this investment all about?
Clean & Green is an “ETF’, or ‘exchange-traded fund’, officially called the iShares Global Clean Energy Fund. The focus of this investment theme is on the leading companies around the world that produce energy from solar, wind and other renewable sources. The world needs more energy than ever before. Yes, you probably crank the heat / air conditioning more than you really need to. But the real culprit is growth in places like China, which means more companies, cars, trucks and planes. In China alone, energy use has tripled since 2000. Over 80% of today’s energy comes from coal, oil and gas, which generates two-thirds of all climate pollution. Energy from sources like sun, wind, and waves can help, because it doesn’t run out, and it’s far better for the environment. Renewable energy will most likely be the largest source of new power generation in the world within five years, and the business of producing it stands to grow along the way.

In China alone, energy use has tripled since 2000.

What companies does this investment include?
Clean & Green consists of 30 leading renewable energy companies in over a dozen countries, including the US, China, and Brazil. One is SolarCity, co-founded by Elon Musk, the Tony Stark-like innovator behind Tesla and SpaceX. SolarCity is the second largest provider of solar power panels, and supplies them to homes, companies, and yesTeslas. Another major holding is China Everbright International Limited, which turns waste into energy, generates wind and solar power, and cleans up water and hazardous materials. Clean & Green also includes Vestas Wind Systems, a leading provider of wind turbines based in Denmark, and Enel, a large Italian energy company that provides hydro, wind, geothermal and solar power to Europe, Africa and other markets.

Who is this investment for?
Clean & Green could be for you if want to back companies that are cleaning up the environment, if you think the renewable energy business is poised for massive growthor both. Just remember: while this could be a good addition to a diverse portfolio, it shouldn’t be your only investment. The energy sector can be volatile, so if you invest in Clean & Green, it’s a good idea to do that a little at a time, at regular interviews. That helps reduce the risk of investing when prices are high.

Why did it make the cut for Stash?
Take a look at the underlying fund. While it is focused on one sector, it provides global exposure. It has reasonable fees. And it’s a fund created and managed by iShares, a division of BlackRock—the biggest investment manager in the world.

What are some other investments like this?
If you like the idea of investing in companies that aim to do good and to do well, here are a few other Stash investments to check out:

Note: These are just a few of the investment choices available on Stash and may not be suitable for everyone. Depending on your risk profile, you may not see the investments on Stash. See our Disclosures.

Investing in energy focused investments alone is not diversified and should be complemented by other diversified investments in the “I want” category. Energy focused investments can be volatile.

 

By Stash Team

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