almost 3 years ago • 1 min
As the clamor grows for governments to take more action on climate change, investors are understandably buying up renewable energy stocks.
But, as the chart shows, those gains have been unevenly spread. Over the past two years, the Invesco Solar exchange-traded fund (in pink) has more than tripled. Meanwhile, the First Trust Global Wind Energy ETF (in blue) and the Global X Uranium ETF (in green) have climbed 71% and 59%, respectively.
The gains in wind and uranium stocks are admittedly nothing to sniff at, but the degree to which they lag the solar surge suggests investors are more likely to find future bargains among makers of wind turbines and nuclear plants than photovoltaic panels.
The biggest holdings in the Global X Uranium ETF (ticker: URA) are uranium mining firms, including Kazakhstan’s Kazatomprom and Canada’s Cameco and NexGen Energy. The First Trust Global Wind Energy ETF (ticker: FAN) names Vestas Wind Systems, Northland Power, and Siemens Gamesa Renewable Energy as its top investments. And the Invesco Solar ETF (ticker: TAN) is most heavily invested in Enphase Energy, SolarEdge Technologies, and Sunrun.
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