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. Future ETFs Channel
  2. For Inflation Reduction Act Benefits, Check Out GSFP
Future ETFs Channel
Share

For Inflation Reduction Act Benefits, Check Out GSFP

Tom LydonAug 26, 2022
2022-08-26

The recently passed Inflation Reduction Act contains a veritable cornucopia of renewable energy, and the related equities and exchange traded funds recently reflected as much.

Among that group is the Goldman Sachs Future Planet Equity ETF (GSFP B). Like other renewable energy and clean technology ETFs, GSFP is proving responsive to the Inflation Reduction Act becoming law, as highlighted by a solid 4.50% gain over the past month.

“Clean energy, the circular economy, electric vehicles and other green technologies have long been areas in which the US has lagged Europe and China, where adoption rates are higher and innovation has been stronger. Although many green technologies are now economically viable even without government subsidies, this shift in focus by the US government will add further impetus to the ongoing global transformation and will help ensure that the US is energy self-reliant in the future,” according to a recent note from Goldman Sachs Asset Management.

As noted above, an array of renewable energy ETFs, including GSFP, are getting a lift from the aforementioned legislation. That doesn’t mean that all those funds are equally levered to the Inflation Reduction Act. In fact, GSFP stands as a case study as to why it’s crucial for investors to look under the hood rather than blindly buying ETFs based off names alone.

Obviously, the Inflation Reduction Act contains plenty of spending for solar, wind, and green banks — themes that GSFP has a 21.1% weight to, according to issuer data. But there’s more for investors to consider. For example, the bill features tax credits for the manufacturing of electric vehicles and the purchase of those cars. GSFP’s related exposure is a third of its lineup.

Additionally, 8% of the ETF’s roster is levered to spending aimed at cutting agriculture emissions. More than 13% of the GSFP portfolio has inroads to spending aimed at crediting consumers for purchasing energy-efficient appliances. Bottom line: GSFP has a concentrated lineup, but it’s arguably one of the most versatile ETFs in this category.

“In our view, the underlying economics are the true drivers of the secular growth story. In fact, thanks to the rapid pace of disruption in the space, cost curves have been already coming down drastically – the renewables and electric vehicle (EV) battery space are powerful examples in this context – and we are convinced the thematic opportunities we are targeting will profoundly change the way we live, work and consume not just because of a supportive policy backdrop, but simply because the economics have started to make sense,” concluded GSAM.

For more news, information, and strategy, visit the Future ETFs 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