Is Now the Time to Invest in Alternative Energy ETFs?

Several years of swimming against the tide of cheap oil have left alternative energy ETFs unloved, but the savvy investor may see this as the ideal time to buy

Kenneth Lamont 6 April, 2017 | 12:31PM

Several years of swimming against the tide of cheap oil have left alternative energy ETFs unloved, but the savvy investor may see this as the ideal time to buy. Passive options in the space remain limited. As we speak, there are currently only two alternative energy ETFs for sale in Europe.

The historically low-oil price over recent years has contributed to uninspiring returns for alternative energy funds. However, for investors considering an investment now, the future appears much brighter. Many believe that the reliance on carbon-based energy sources is unsustainable and that we are approaching a political tipping point, when we have no choice but to fully embrace alternative energy sources.

The speed at which this takes place is heavily dependent upon political will, and by extension regulation. When the pendulum does swing towards green energy, both available funds should be well positioned to benefit.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
iShares Global Clean Energy ETF USD Dist GBP442.95 GBX-8.34
Lyxor New Energy ETF Dist A/I25.07 EUR-2.72

About Author

Kenneth Lamont  is a passive funds research analyst for Morningstar Europe.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites