ICLN’s rating reflects that the ETF can effectively manage ESG issues, while it may be more resilient to any disruptions arising from these events. Historically, the average annual total returns the ETF has generated include the following:Īccording to the MSCI ESG Fund Rating which measures the resiliency of portfolios to long-term risks and opportunities that may arise from environmental, social and governance (ESG) factors, ICLN has scored an A - with AAA regarded as the best and CCC as the worst - and a quality score of 6.8 out of 10. As a result, ICLN shelled out 141% in returns during the last calendar year, while the ETF saw net creations exceed $2.6 billion in 2020. President Joe Biden’s support and promise for financial support for the clean energy industry. Much of this enthusiasm was centred around U.S. The past year has been monumental for the industry as clean energy ETFs just like ICLN delivered blockbuster runs to the upside. (Source:, as of April 16, 2021) What has ICLN’s performance been like? Here is a breakdown of the ETF’s top 10 holdings. Meanwhile, China-based companies amount to 6.80%, Italy 4.79% and Portugal 4.32%, amongst others. Other sectors include semiconductor equipment which accounts for 12.40%, electrical components and equipment at 10.74% and semiconductors at 3.76%, amongst others.įrom a geographical standpoint, US-based companies top the list at 37.57%, followed by Denmark at 14.36%, Spain at 7.07% and Canada at 6.80%. Electrical utilities account for 37.77%, heavy electrical equipment 15.37%, while renewable electricity amounts to 14%. The ICLN ETF has 30 stock holdings, many of which consist of mid-cap and small-cap clean energy companies. So why invest in ICLN? One of the largest renewable energy ETFs with over $5 billion in assets as of April 16, 2021, ICLN offers investors exposure to companies that produce energy from solar, wind and other renewable sources, a sector with great potential, while it also offers targeted access to clean energy stocks from around the world. The ETF takes large concentrated positions in these companies, which are then weighted by market cap and rebalanced on a quarterly basis so that it can hone in on the clean energy theme. More specifically, these companies operate in a range of sub-sectors including biofuels, ethanol, geothermal, hydroelectric, solar and wind, as well as companies that develop technology and equipment used in the process. ICLN seeks to track the S&P Global Clean Energy Index which currently comprises 30 leading clean energy-related stocks. (Source:, as of April 16, 2021) ICLN overview
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Looking to build up your portfolio in the renewable energy space? With a strong asset base, lower expense ratio and impressive performance so far, the iShares Global Clean Energy ETF (ICLN) is certainly a hands-down winner in this space.Īdd ICLN to your portfolio! Download the Moneybase Invest app from the App Store or Google Play. And as clean energy stocks have acquired lofty valuations thanks to a shift away from fossil fuels, the COVID-19 pandemic has further pushed environmental, social and governance-conscious investors to look into this industry and tap into sustainable stocks. With many forms of renewable energy becoming all the more economically viable, consumers have started to embrace these technologies amid growing concerns over carbon dioxide emissions. According to the International Energy Agency (IEA), renewables reached 30% of global electricity generation capacity in 2020, while the sector is expected to reach $1.51 trillion by 2025. I'll admit that I may have some blinders on to the segment, but I still see the opportunities long term, but that much of a drop in a month is tough.Once a niche segment of the broader energy industry, renewable energy is growing by leaps and bounds, slowly becoming an important source of energy in many regions and nations across the globe. QCLN= Down 25% since Feb 9 PBW= Down 33% since Feb 9 ICLN=Down 30% since Feb 9 The underlying companies seem to be down as well, but many of the firms are not involved in any technologies that would have been impacted by limitations that the bad weather highlighted, and it also seems like the storms would allow a huge learning curve where correct, or improved technologies would be implemented and purchased. I would have expected that with the new administration, and with the general upward drift of these areas, that the opportunity would be primed, unless this is just a great time to buy at a discount. It seems that there is a huge amount of downward motion in the Clean Energy segment due to the storms over the last month? If I look at any of the big ones such as PBB, ICLN, FAN ect, there has been a massive selloff.
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