As the global push towards more reliance on renewable energy continues, the demand for energy globally could be met using wind and solar, which opens up opportunities in a pair of Global X ETFs.
A collaboration of researchers from the University of California, Irvine (UCI), China’s Tsinghua University, the Carnegie Institution for Science, and Caltech looked at almost 40 years of energy demand data in 42 countries. What they found is that wind, and solar power could meet a large portion of that demand.
“Wind and solar could meet more than 80 percent of demand in many places without crazy amounts of storage or excess generating capacity, which is the critical point,” co-author Steven Davis, professor of Earth system science at UCI, said. “But depending on the country, there may be many multi-day periods throughout the year when some demand will need to be met by energy storage and other non-fossil energy sources in a zero-carbon future.”
Soaking Up The Sun Power
ETF investors can look at the Global X Solar ETF (RAYS) for opportunities in solar power. RAYS seeks to invest in companies positioned to benefit from the advancement of the global solar technology industry.
This includes companies involved in solar power production; the integration of solar into energy systems; and the development/manufacturing of solar-powered generators, engines, batteries, and other technologies related to the utilization of solar as an energy source.
Features of RAYS:
- High growth potential: Forecasts suggest that the global market for solar energy could reach $200 billion by 2026, quadruple the market size in 2019.
- Advancing clean technologies: Solar is the most abundant energy resource on earth. Increased adoption of solar technologies could potentially help address global power insecurity and minimize the adverse environmental impacts of fossil fuel consumption.
- Conscious approach: RAYS incorporates environmental, social, governance (ESG) screens and follows ESG proxy voting guidelines to affect positive change alongside financial returns.
Wind in an Investor's Sails
There’s the Global X Wind Energy ETF (WNDY) for ETF investors looking to capitalize off wind power. The fund seeks to provide investment results that generally correspond to the Solactive Wind Energy Index.
As such, WNDY seeks to invest in companies positioned to benefit from the advancement of the global wind energy industry, which includes companies involved in wind energy technology production, the integration of wind into energy systems, and the development and manufacturing of turbines that harness energy from wind and convert it into electrical power.
Features of WNDY:
- High growth potential: Forecasts suggest that the global market for wind energy could reach $127 billion by 2027, double the market size in 2019.
- Advancing clean technologies: Wind-powered turbines produce zero direct emissions, meaning that broader adoption could result in reduced greenhouse gas emissions and improved air quality.
- Conscious approach: WNDY incorporates environmental, social, and governance (ESG) screens and follows ESG proxy voting guidelines to affect positive change alongside financial returns.
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