Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • 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
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Education Channel
  2. Explore PBW for Climate Change Equity Exposure
ETF Education Channel
Share

Explore PBW for Climate Change Equity Exposure

Tom LydonMay 02, 2022
2022-05-02

Last month, the Intergovernmental Panel on Climate Change (IPCC) released the third installment of the Climate Change 2022: Mitigation of Climate Change=, addressing issues such as climate change and rising temperatures.

Reading through the report’s tea leaves, it’s not a stretch for investors to come away thinking that it’s going to require massive spending to combat climate change and that there are potentially compelling implications for numerous exchange traded funds, including the Invesco WilderHill Clean Energy ETF (PBW B-).

“Among its key findings are that to keep global temperature rise to 1.5°C by 2100, we must reach peak emissions by 2025, but that current policies, if not changed, would lead to a median of about 3.2°C temperature rise,” notes Moody’s Investors Service.

The $1.1 billion PBW offers investors the depth necessary to capitalize on climate change. The fund, which tracks the WilderHill Clean Energy Index, holds 79 stocks, confirming that it has leverage to multiple clean energy concepts. That’s a relevant trait because it’s going to take advancement and evolution by multiple clean technologies to achieve carbon reduction and climate goals.

“Key takeaways of the report include the potential for between $1-4 trillion in unburned fossil fuel and stranded fossil fuel infrastructure if we limit temperature rise to 2°C. This underscores the importance of preparing preemptively for these risks,” adds Moody’s.

Not surprisingly, emissions reduction is a cornerstone of climate change efforts, and some PBW holdings could play expanding roles on that front. For example, the Invesco fund allocates 44.66% of its weight to industrial stocks — just one example of the importance of sector allocations in renewable energy funds.

“There is significant potential for emissions reductions through scaling up both established and emerging low-carbon technology across industry, energy and other key sectors, as well as addressing demand side solutions, including through car shares, public transportation and less meat intensive diets, among many other possible actions,” concludes Moody’s.

Speaking of sector exposures, consumer discretionary and technology names combine for over 37% of the PBW roster. The fund also isn’t overly dependent on large-caps, as such stocks represent just 5.77% of its line-up. None of PBW’s holdings exceeded a weight of 1.76% as of April 28, according to issuer data.

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

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
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
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X