U.S. investor interest in renewable energy sources continues to increase midway through 2021, boosting assets like the ETF Global X Renewable Energy Producers (RNRG).
“The United States claimed first place on the last IHS Markit Attractiveness rankings of global renewable energy markets mainly because of the solid fundamentals of the market and the availability of an attractive support regime, although gradually reduced ”, a Article from OilPrice.com mentionned.
“The survey tracks the attractiveness of investments for non-hydro renewable energies such as solar photovoltaic, offshore wind and onshore wind,” adds the article. “The ranking assesses each country on the basis of seven sub-categories which include market fundamentals, current policy framework, infrastructure readiness, investor friendliness, income risks and return expectations, ease of compete and the overall size of the opportunities for each market. “
RNRG seeks to track, before fees and expenses, the price and return performance of the Indxx YieldCo & Renewable Energy Income Index. The fund invests at least 80% of its total assets in securities of the underlying index and in ADRs and GDRs based on the securities of the underlying index.
The Underlying Index is designed to provide exposure to publicly traded companies that produce energy from renewable sources including wind, solar, hydroelectric, geothermal and biofuels (including publicly traded companies which are incorporated to hold operating assets that produce defined cash flows). The RNRG expense ratio is 0.65%.
The RNRG offers investors:
- High growth potential: RNRG enables investors to access strong growth potential through companies at the forefront of structural change in global energy production.
- Exposure to renewable energies: ETF is a thematic room targeting renewable energy producers.
- A conscious approach: RNRG incorporates Glass Lewis’ environmental, social and governance (ESG) proxy voting guidelines.
- Strong performance: The fund is up 16% over the past 12 months.
The power of wind and solar energy
Wind and solar power probably dominate the market, according to IHS Markit. The world’s two largest economies will be the ones that use both technologies the most.
“Onshore wind, offshore wind and solar PV are expected to account for over 80% of all new power generation capacity in the world by 2030,” IHS Markit mentionned. “While the lion’s share of capacity additions in 2020 came from just two markets, China and the United States, nearly 50 markets saw double-digit growth over the past year.”
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