Energy ETFs listed US exchanges are correlated with oil prices on the international markets
This is not is true of the more diversified Green Energy, buttressing 'ex-fossil fuels' or 'low-carbon' funds against energy market volatility
Green Economy Energy funds, initiated in response to investor demand, have chosen to define their mandate fairly broadly by including many indirectly related sub-industries in the portfolios
Apart from a favorable regulatory environment, the funds benefit from this diversification, accounting for large allocations to Information Technology (silicon, wafers, solar cells…) along with Industrial Goods (batteries, …) and Base Materials (lithium, cobalt..)
However, depending on preferences and weighting by sud-industry in each fund, performance and risk exposure (volatility) of Green Economy funds turn out to be widely distributed
Public subsidies, driving the expansion of solar and wind energy sources worldwide, have in fact benefited the most competitive providers of solar panels and wind turbines on global markets, putting Chinese manufacturers in the crosshairs of Western upstarts and their governments, and taking a heavy toll on solar and wind ventures
Green energy priorities uncover a further paradox in out-performing pure nuclear energy and uranium themes, balancing the dismal record of Renewable favorites, sun and wind....
The investor will make a choice between the ETFs in view of preferred investment horizon and industry weightings
The Renewable Technologies theme presents a selection of US-listed companies
Commodity Energy Futures lists energy ETNs (Exchange Traded Notes) and ETFs invested in futures energy contracts