For investors seeking momentum, iShares Global Clean Energy ETF ICLN is probably on radar. The fund just hit a 52-week high and is up about 123% from its 52-week low price of $8.08/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
ICLN in Focus
This fund offers exposure to companies that produce energy from solar, wind, and other renewable sources. It has key holdings in renewable electricity, semiconductor equipment, and electrical components & equipment. U.S. firms account for 42.9% of the assets while China rounds off the next spot with double-digit exposure. The product charges 46 basis points in annual fees (see: all the Alternative Energy ETFs here).
Why the Move?
The clean energy corner of the broad U.S. stock market has been an area to watch given leading Democratic presidential candidate Joe Biden’s push for clean energy and infrastructure plans. Biden aims to pump $2 trillion into green energy over four years to build solar panels, charging stations and more. A Biden presidency is touted to spur tens of thousands of new wind turbines and millions of new solar panels across the United States to rapidly achieve zero-carbon energy. The plan will eliminate carbon emissions from the power grid by 2035 and accelerate the uptake of electric vehicles.
More Gains Ahead?
It seems that ICLN might remain strong given a high weighted alpha of 53.02 and also a high 20-day volatility of 36.92%. As a result, there is definitely still some promise for investors who want to ride on this surging ETF a little further.
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iShares Global Clean Energy ETF (ICLN): ETF Research Reports
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