ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Education Channel
  2. Charge Up With PBW as Renewables Landscape Expands
ETF Education Channel
Share

Charge Up With PBW as Renewables Landscape Expands

Tom LydonFeb 22, 2022
2022-02-22

The renewable energy landscape is evolving, and it’s incumbent upon lean energy investments, such as the Invesco WilderHill Clean Energy ETF (PBW B), to keep pace.

Fortunately for investors seeking related exposures, PBW is potentially an ideal choice. In fact, the exchange traded fund is arguably more relevant today than it was when it debuted nearly 17 years ago because investors need renewable energy strategies that evolve with the times.

The $1.14 billion PBW, which tracks the WilderHill Clean Energy Index, answers that call. An obvious plus with PBW is that the fund isn’t driven solely by a single renewable energy concept or industry. Rather, the ETF is diverse and positioned to capitalize on a fast-growing renewable energy universe.

That’s important because as IHS Markit notes in a new report, the new normal in renewable energy isn’t just about driving costs down. While that remains important, end users want value, too.

“Financiers and investors also value investments in renewables as a step to meet climate commitments and de-risk portfolios,” says IHS Markit. “The consolidated banking experience with renewables, alongside a strong push for green financing, has also brought down the cost of capital for renewable power projects.”

With exposure to seven sectors, PBW reaches deep into the renewable energy ecosystem. Further diversification benefits are offered by minimal single stock risk, as PBW allocates no more than 2.14% of its weight to any of its 80 holdings. Those factors underscore the point that PBW is levered to rising renewable spending at the corporate level.

“This trend is already building on the sizeable investment that has occurred in recent years by first time corporate purchasers in major markets such as the United States, Europe and key markets in Asia,” notes IHS Markit. “The pool of companies who will be renewable energy off-takers or owners is expected to diversify with a range of interest from different industries such as technology, retail, mining, manufacturing, accommodation, and heavy industries.”

PBW could also prove relevant on another front: carbon capture expansion. That’s largely viewed as one of the centerpieces of fighting climate change and expanding net-zero goals in the years ahead.

“The year 2021 solidified the revival of the carbon capture and utilization sector (CCUS) industry, as the global trend towards more ambitious climate goals drives ongoing activity in the CCUS market,” concludes IHS Markit. “The active pipeline for large-scale CCUS projects – those at the construction, design, financing, and planned stages –increased by 26% in 2021, and funding announcements during the year showed that a handful of governments are collectively investing multiple billions of dollars into developing the sector.”

For more news, information, and strategy, visit the ETF Education Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X