More and more investors are playing the renewable energy card. This is because climate change and the fight against it are increasingly in the spotlight. If politicians want to achieve binding climate targets, massive investments in the clean energy sector are likely to follow in the coming years.
It was only in recent weeks that the HANetf S&P Global Clean Energy Select ETF, a new exchange-traded fund dedicated precisely to this sector, came onto the market. In the following article, we will take a closer look at the climate ETF.
General information about the ETF
The HANetf S&P Global Clean Energy Select ETF is a physical variant that was only launched at the end of June 2021. The allocation of income is accumulating. In addition, less than one million euros remain in the new climate ETF. However, this situation is likely to change in the coming months or years. The expense ratio of 0.55% TER is average for a specialized thematic ETF.
The investment strategy
The HANetf S&P Global Clean Energy Select ETF is an ETF that focuses on various companies that are researching biofuels, fuel cells, solar energy and the like. At the same time, the ETF has a very special feature. This is because the HANzero approach enables a unique offsetting of emissions by investing in various climate projects that guarantee the offsetting of emissions.
Country distribution
A total of 45% of the companies in the ETF come from the United States of America. This is followed by other countries with around 22%, which the ETF provider does not present separately. Thus, the companies really seem to come from different regions of the world. Spain, Denmark and China are again explicitly mentioned with an ETF weighting of around 8%.
The largest positions
All companies in the top 10 have a share of between 4 and 6%. This means that the top ten represent about half of the ETF. Three positions have a weighting of more than 5%. These are the solar company Xinyi Solar Holding, Enphase Energy and the Austrian company Verbund AG, which focuses on hydropower.
Performance
The ETF's performance hardly allows any conclusions to be drawn. After all, it has only been possible to invest in the HANetf S&P Global Clean Energy Select ETF for a few weeks. However, we can take a look at the performance of the underlying index. In 2016, the price fell by around 17%, while the following year it rose by around 20%. However, it was only in 2019 and 2020 that the index really took off, with returns of 44% and 141% respectively.
Buy the climate ETF now?
The HANetf S&P Global Clean Energy Select ETF is an interesting new option for all investors looking to invest in a climate ETF. The ETF is well diversified across regions. At the same time, no single company is too heavily weighted to influence the ETF’s performance on its own. Only time will tell whether the HANetf S&P Global Clean Energy Select ETF offers significant advantages over the iShares Clean Energy or the Lyxor New Energy ETF.
