3 Alternative Energy ETFs Crushing It This Year
It's often said that a previous year's leadership groups don't keep that momentum going in the following year. However, 2020 is dealing a blow to that thesis. Look at the broader market. It's Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and friends doing the heavy lifting… again.
On a more tactical level, some of last year's best-performing exchange traded funds are off to strong starts this year and that's particularly true of alternative energy funds.
On Wednesday, 335 ETFs hit all-time highs and nearly every alternative energy fund was part of that illustrious group. Here's a trio of renewable energy funds that off to hot starts this year.
ALPS Clean Energy ETF (ACES)
The ALPS Clean Energy ETF (CBOE: ACES) was a star last year and its shining again to start. Just how brightly, you ask? Well, how about a 5.76% gain on Wednesday on more than six times the average daily volume to vault to another record higher and a year-to-date gain of almost 29%.
What has made and will likely continue to make ACES an alternative energy winner is its wide reach in the renewable space, meaning it expands well beyond just wind and solar, though those important drivers with the ETF, too.
ACES touches electric vehicles, energy storage, lithium, fuel cell, LED, smart grid, and energy efficiency technologies, among other emerging energy concepts.
Invesco Solar ETF (TAN)
One of the godfathers of the alternative energy ETF arena, the Invesco Solar ETF (NYSE:TAN) jumped more than 8% yesterday on more than quadruple the average daily volume, launching to a year-to-date gain of 32.47%.
Fun fact: six TAN components more than doubled last year. Fun fact part II: TAN is getting a lift from Tesla's (NASDAQ:TSLA) more overt push into residential even though Elon Musk's company isn't among TAN's 22 holdings.
SPDR Kensho Clean Power ETF (CNRG)
Perhaps the the SPDR Kensho Clean Power ETF's (NYSE:CNRG) days toiling in anonymity are numbered. Gaining 6% on more than double the average daily volume as the fund did on Wednesday can't hurt its case.
CNRG tracks the S&P Kensho Clean Power Index, which is rooted in artificial intelligence, and offers exposure to solar, wind, geothermal, and hydroelectric power, according to State Street.
A 5.15% weight to Tesla is among the factors buoying this ETF's more than 23% year-to-date gain.
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