Invesco’s Clean Energy ETFs Post Double-Digit Returns

The clean energy offerings in Invesco’s suite of energy ETFs posted double-digit returns for July. The Invesco WilderHill Clean Energy ETF (PBW B) has returned 20.5% over a one-month period, the Invesco Solar ETF (TAN B-) has returned 16.8%, and the Invesco Global Clean Energy ETF (PBD A+) has returned 15%, according to VettaFi.

The news of U.S. fiscal stimulus possibly being injected into clean energy companies caused clean energy stocks to surge. With the support of Senator Joe Manchin, Senate Democrats last Wednesday unveiled a budget reconciliation bill that includes $369 billion in energy security and climate spending over the next 10 years, according to Utility Dive. 

The bill, called the “Inflation Reduction Act of 2022,” would offer a raft of tax credits to help stimulate adoption of clean energy technologies, as well as spending for low-income and minority communities that suffer disproportionately from pollution, Politico reported. 

Consumer tax credits for EVs and household renewable energy installations/appliances, tax credits for EV battery and materials suppliers, tax credits for zero-carbon power projects and green hydrogen production, as well as extended tax credits for biodiesel are some of the major highlights of the potential bill, according to a recent insight from ALPS

Despite tightening financial conditions across the globe, clean energy stocks set themselves apart from nearly all other market segments due to a multi-trillion-dollar global effort to transition away from fossil fuels over the next few decades, both in the private and public sectors, according to ALPS.

Global energy constraints due to Russia’s Invasion of Ukraine and higher fossil fuel prices have driven the U.S., Europe, China, Canada, and other countries to expedite the build-out of clean energy infrastructure to reach decarbonization goals by 2050.

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