11Mon·

Global Clean Energy

I am currently somewhat concerned about my investment in the Global Clean Energy ETF from iShares. Despite the long-term potential for green energy and increasing global investment in sustainability, fluctuating market conditions and the ETF's sometimes volatile performance have raised questions. High energy costs and political uncertainty could slow the recovery in the sector. I will continue to monitor developments in order to assess whether the investment can still deliver the hoped-for return in the long term. $INRG (+0.9%)

12 Comments

Tom M.@Lumimyrsky

11Mon

I would sell it immediately

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VP@VPT

11Mon

But right away!

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Marcel@Mcl1991

11Mon

@VPT unverzüglich!

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schlimm.@schade

11Mon

Most thematic ETFs are simply garbage. They select stocks according to objective criteria that are only of limited use for estimating actual future participation in the growth of the respective market segment. You can achieve similarly good results if you hang all companies with "Energy" somewhere in their name on a dartboard. I would rather analyze the stocks individually and invest directly in really convincing companies, or say goodbye to trying to achieve an excess return based on some kind of thematic vision.

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Tobi60@Tobi60

11Mon

Away with it

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Tenbagger2024@Tenbagger2024

11Mon

You can see that the topic of environmental protection plays a minor role in the current election campaign.

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VP@VPT

11Mon

Moin,

What do you mean by long-term and what return are you hoping for?
Since its launch in 2007, the colleague is at over -6% p.a. 🤔

I admit to having bought the ETF after 2020. But then I divested again in 21.

I think the basic thesis that the market is important, will become more important and will grow is clear, the question is:
Will you beat the market in the long term? Does it make the ETF better than the MSCI World, can the ETF outperform the market even beyond a "trend" over 20 years?
Probably not, then the question is: can you time the trend so well that you can earn overtime and accept -6% all these years until it breaks out at some point?

Take a look at the chart from 2008 to 2020. You'll see that the ETF has performed negatively. Why is that? The market has certainly continued to grow and climate change has become more important since 2008. Even at the peak before 2008, there were huge expectations of the market, which could not be fulfilled by profits, etc. If you are unlucky, the ETF will continue to perform negatively for the next decade (and think of the opportunity costs here) but who knows, the past scenario does not have to repeat itself.

Many companies in the industry are still struggling with their profitability, you have a lot of competition, commodity prices, margin pressure, etc. Apart from that, you have huge investment projects with an insane lead time; an offshore wind farm like this is not built overnight. The sector also depends on political influence, as we have just seen. See the USA with Trump or even if China pushes the solar industry hard and all other providers are then pushed out of the market, the same can happen with other sectors.

So there are definitely risks. Simply saying that climate pi pa po will become more important is not enough, see 2008.
It really is a bet, you can go in with 10% of your portfolio. Personally, I wouldn't do any more

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Oleg@ScorpionfromBW

11Mon

That's exactly why I don't buy thematic ETFs. Just all World or s&p or Nasdaq and that's it. You get more out of it in my opinion

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Fabian@d4Y

11Mon

I still have the ETF at the moment, I was expecting a recovery of some higher weighted stocks... I also believe that stocks in the USA will gain momentum again with Trump, the USA cannot avoid the issue either...
I will wait and see this year
Even if I might have better performance elsewhere 😉

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Sven@sven21

10Mon

I am also in the boat and have an investment in $INRG. I have to agree with most of the voices here that thematic ETFs yield a poor return, but I have to say that I personally hold such products more out of conviction. Whether this is stupid or not, everyone has to decide for themselves...

I myself only have a savings plan of €10, so it's not a blatant loss-making business.

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Vasili K.@Vasili

8Mon

Thank God I sold the crap 2 years ago and invested in a junk stock like National Bank of Greece and even this has yielded over 100% so far 😆

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stock_whiz_1195@stock_whiz_1195

2Mon

Looks a little different now

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