Is the Clean Energy Rally Sustainable? Examining the iShares Global Clean Energy ETF’s Surge

After a prolonged period of underperformance, investor interest in the clean energy transition has reignited, propelling the iShares Global Clean Energy ETF to deliver substantial returns. A powerful combination of renewed political support, declining costs for renewable technologies, and robust performance from its underlying holdings has fueled this impressive recovery, rewarding patient investors. The critical question now is whether these gains signal a durable long-term trend.

This ETF tracks the S&P Global Clean Energy Index, offering a passive investment strategy with a notable characteristic: it is classified as “non-diversified.” This allows the fund to take significant overweight positions in specific companies or sub-sectors, a structure that amplifies Read more...