What’s Fueling the Rise in Green Energy ETFs?
Green and renewable energy ETFs have performed exceptionally well this year, with the majority of outperformance coming after the close of May.  At a base case level, we believe that investor sentiment toward this investment theme may be reflecting the shifting outlook (a Biden win) for the upcoming US elections, which could have a significant impact on the industry.  Beyond November's election results, we expect the US—along with other countries—to enact sizeable fiscal stimulus that targets green energy projects.  Over the long-term, favorable changes in public opinion and economic fundamentals are likely to benefit the industry, as costs relative to traditional energy sources have declined dramatically.  In our view, these developments may help fuel robust performance for the green and renewable energy theme in the years ahead.

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Posted on Friday, October 16, 2020 @ 9:23 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.