Author Topic: Renewable Energy ETFs - which do you like?  (Read 1705 times)

Radioherd88

  • Stubble
  • **
  • Posts: 100
Renewable Energy ETFs - which do you like?
« on: December 23, 2020, 11:00:48 AM »
Hi All,

Looking to add some Renewable Energy ETFs to add to my portfolio and there are a few that are similar I can't really decide between. Most are listed on this article:

https://www.optimizedportfolio.com/best-clean-energy-etfs/

Does anyone have any others they like and why?

Most of these are .4 to .7 expense ratios, has anyone seen any lower?

I'm currently thinking i'll pick one of the mostly US ones and one of the more global ones and split them 50/50...

Thanks in advance for your thoughts.

MustacheAndaHalf

  • Magnum Stache
  • ******
  • Posts: 3688
Re: Renewable Energy ETFs - which do you like?
« Reply #1 on: December 23, 2020, 01:30:50 PM »
Vanguard charges $0 to buy or sell stocks.  You should check if that's true at your brokerage - several imitated Vanguard to avoid losing customers.

Here's a page on etfdb.com showing the ETFs which hold Enphase Energy:
https://etfdb.com/stock/ENPH/
Several of the ETfs from your article hold this company.

So you might pick companies found in several ETFs, and buy them directly.  The median number of holdings for those ETFs is about 45, so there's plenty to pick from (and plenty of overlap).  Rather than pick at random, you might try to diversify by picking companies in different areas.  (One with solar, another with batteries, another with wind energy, ...)

Radioherd88

  • Stubble
  • **
  • Posts: 100
Re: Renewable Energy ETFs - which do you like?
« Reply #2 on: December 23, 2020, 02:03:48 PM »
Vanguard charges $0 to buy or sell stocks.  You should check if that's true at your brokerage - several imitated Vanguard to avoid losing customers.

Here's a page on etfdb.com showing the ETFs which hold Enphase Energy:
https://etfdb.com/stock/ENPH/
Several of the ETfs from your article hold this company.

So you might pick companies found in several ETFs, and buy them directly.  The median number of holdings for those ETFs is about 45, so there's plenty to pick from (and plenty of overlap).  Rather than pick at random, you might try to diversify by picking companies in different areas.  (One with solar, another with batteries, another with wind energy, ...)

Sounds like I have a plan for my holidays! Yes Vanguard is my broker - I'm currently only ETFs or Mutual funds but I guess i can get "risky" with some solo stocks for this part of the portfolio. Thanks for the suggestion.

GreenEggs

  • Handlebar Stache
  • *****
  • Posts: 1283
  • Location: Here & There
Re: Renewable Energy ETFs - which do you like?
« Reply #3 on: December 23, 2020, 02:42:38 PM »
I began buying TAN on 8/5 and it's gained 104.6% since then.  I've purchased 6 lots, the last being this morning. 


I also began buying PBW on 12/9 and it's gained 17.6% since then!!


They're both from Invesco and have an ER of 0.7%.  I have plenty of TAN, so plan to keep adding to PBW until I'm holding 50/50 of each.


I regret that I didn't start buying them earlier. 

KungfuRabbit

  • Bristles
  • ***
  • Posts: 276
Re: Renewable Energy ETFs - which do you like?
« Reply #4 on: December 23, 2020, 07:16:44 PM »
I originally split 50/50 between ICLN and TAN, they overlap on some solar stocks, so basically I hedged stronger on solar. Theyíve both done well, but TAN a lot better. Obviously they are higher fees than VTI or something, but washes out if solar keeps doing well. 

Also, I bought ICLN over QCLN because they were very similar but QCLN had a large TSLA holding, which is great (and did well...), but I own individual TSLA as well so figured might as well have other stocks.

lemonlyman

  • Stubble
  • **
  • Posts: 200
Re: Renewable Energy ETFs - which do you like?
« Reply #5 on: December 24, 2020, 09:26:49 AM »
TAN since 2016 because of Tony Seba talks. Just made too much sense through 2030. Was down 50% for a couple years there but now itís up about 300% over cost basis. Tony Seba was the catalyst for most of my wealth at this point.

Abe

  • Handlebar Stache
  • *****
  • Posts: 1919
Re: Renewable Energy ETFs - which do you like?
« Reply #6 on: December 24, 2020, 08:09:36 PM »
I think the market has priced in the expected profits for the next several years for the major holdings in the TAN etf. First solar, Enphase and Solaredge suddenly shot through the roof because I think people discovered them outside of the niche world of solar geeks like myself. I'd be surprised if their stock values keep going up faster than the overall market, but hopefully! I'm encouraged by the extension of the solar credits for another two years, but think we are still over-estimating the US domestic solar market. Also, still too many random companies installing random panels, no one has made a strong brand yet. Hence the vacillating quarterly profits. That being said, in the long run someone will succeed, so I will probably buy the ETF after the prices tank when the speculators dump the stocks to lock in profits. Has happened to them all before.
« Last Edit: December 24, 2020, 08:13:57 PM by Abe »

Radioherd88

  • Stubble
  • **
  • Posts: 100
Re: Renewable Energy ETFs - which do you like?
« Reply #7 on: December 28, 2020, 03:03:28 PM »
I think the market has priced in the expected profits for the next several years for the major holdings in the TAN etf. First solar, Enphase and Solaredge suddenly shot through the roof because I think people discovered them outside of the niche world of solar geeks like myself. I'd be surprised if their stock values keep going up faster than the overall market, but hopefully! .

Yeah i am a bit concerned that i'm buying at the top - i thought i was early but looks like 6 months ago was early - it might be a slow burn from here over the next decade

GreenEggs

  • Handlebar Stache
  • *****
  • Posts: 1283
  • Location: Here & There
Re: Renewable Energy ETFs - which do you like?
« Reply #8 on: December 28, 2020, 03:55:39 PM »
I think the market has priced in the expected profits for the next several years for the major holdings in the TAN etf. First solar, Enphase and Solaredge suddenly shot through the roof because I think people discovered them outside of the niche world of solar geeks like myself. I'd be surprised if their stock values keep going up faster than the overall market, but hopefully! .

Yeah i am a bit concerned that i'm buying at the top - i thought i was early but looks like 6 months ago was early - it might be a slow burn from here over the next decade




You're welcome to sit on the sidelines.  If it goes down you'll feel smart.  If it continues going up you'll feel dumb. 


If you invest half your money you'll feel both smart & dumb, at the same time. 


Good luck  ;)

Abe

  • Handlebar Stache
  • *****
  • Posts: 1919
Re: Renewable Energy ETFs - which do you like?
« Reply #9 on: December 28, 2020, 08:05:25 PM »
One thing I've considered, but am too lazy to figure out how to do easily, is have a portfolio wherein the oil & gas companies are replaced by solar companies. I think both are high risk but one sits with me better. Overall VFINX or equivalent funds have very low investment in oil & gas (<5%) so maybe throw 5% into this ETF once things settle down (or don't for a year)?

Radioherd88

  • Stubble
  • **
  • Posts: 100
Re: Renewable Energy ETFs - which do you like?
« Reply #10 on: January 05, 2021, 07:56:09 PM »
I think the market has priced in the expected profits for the next several years for the major holdings in the TAN etf. First solar, Enphase and Solaredge suddenly shot through the roof because I think people discovered them outside of the niche world of solar geeks like myself. I'd be surprised if their stock values keep going up faster than the overall market, but hopefully! .

Yeah i am a bit concerned that i'm buying at the top - i thought i was early but looks like 6 months ago was early - it might be a slow burn from here over the next decade




You're welcome to sit on the sidelines.  If it goes down you'll feel smart.  If it continues going up you'll feel dumb. 


If you invest half your money you'll feel both smart & dumb, at the same time. 


Good luck  ;)

The half and half is definitely my style :)

GreenEggs

  • Handlebar Stache
  • *****
  • Posts: 1283
  • Location: Here & There
Re: Renewable Energy ETFs - which do you like?
« Reply #11 on: January 06, 2021, 09:49:28 AM »
I hope you guys loaded up on TAN.  It's up almost 10% today, at the moment.


 :)  :)  :)




Abe

  • Handlebar Stache
  • *****
  • Posts: 1919
Re: Renewable Energy ETFs - which do you like?
« Reply #12 on: January 06, 2021, 08:44:37 PM »
Will buy when it falls 25-30% again, then hold and ignore for several years. I am planning on buying solar panels this spring, though!

Radioherd88

  • Stubble
  • **
  • Posts: 100
Re: Renewable Energy ETFs - which do you like?
« Reply #13 on: January 07, 2021, 05:31:23 PM »
Will buy when it falls 25-30% again, then hold and ignore for several years. I am planning on buying solar panels this spring, though!

Cool - when is it going to fall 25-30% again now that democrats have the majority in the senate and it's going to be nothing but news about the plan for investing billions into the industry? Asking for a friend....

Abe

  • Handlebar Stache
  • *****
  • Posts: 1919
Re: Renewable Energy ETFs - which do you like?
« Reply #14 on: January 07, 2021, 07:47:02 PM »
When people cash in the profit they made in the recent run-up, or we relax tariffs on panels and the US panel producers that are making up a large part of the recent gains take a profit hit, or Democrats get stalled out by republicans (like usual). I think enphase and solaredge will be ok since they have the inverter market pretty secured between the two.  Again this is all speculation since none of us are experts in the field (I donít think...correct me if Iím wrong and will reconsider my opinions), but itís fun to do so when thereís no money at stake!

My general opinion is whatever money was to be made in speculation has been made. I highly doubt that this field in general will continue to outperform the overall market in the long run, which is what is implied in the discussion (otherwise why risk sector volatility?)  hopefully Iím wrong and the world is about to be fundamentally reshaped. But, I think it will take much longer than we hope.
« Last Edit: January 07, 2021, 07:50:39 PM by Abe »

Radioherd88

  • Stubble
  • **
  • Posts: 100
Re: Renewable Energy ETFs - which do you like?
« Reply #15 on: January 07, 2021, 08:46:06 PM »

My general opinion is whatever money was to be made in speculation has been made. I highly doubt that this field in general will continue to outperform the overall market in the long run, which is what is implied in the discussion (otherwise why risk sector volatility?)  hopefully Iím wrong and the world is about to be fundamentally reshaped. But, I think it will take much longer than we hope.

Yeah, it certainly doesn't seem like a buy low opportunity atm - certainly great if you got in 6-12 months ago

GreenEggs

  • Handlebar Stache
  • *****
  • Posts: 1283
  • Location: Here & There
Re: Renewable Energy ETFs - which do you like?
« Reply #16 on: January 07, 2021, 09:26:45 PM »
I picked up my first shares of TAN on 8/05/20 and they're up 139% today. 
The last lot I purchased on 12/23/20 and it's up 16.54% today. 




Maybe it's done?  Your guess is as good as mine. 




Abe

  • Handlebar Stache
  • *****
  • Posts: 1919
Re: Renewable Energy ETFs - which do you like?
« Reply #17 on: February 25, 2021, 07:53:42 PM »
Down to 94 on after hours trading, approximately 20%. 5% more to go and I may buy.

Abe

  • Handlebar Stache
  • *****
  • Posts: 1919
Re: Renewable Energy ETFs - which do you like?
« Reply #18 on: March 10, 2021, 10:25:49 PM »
Will buy when it falls 25-30% again, then hold and ignore for several years. I am planning on buying solar panels this spring, though!

Cool - when is it going to fall 25-30% again now that democrats have the majority in the senate and it's going to be nothing but news about the plan for investing billions into the industry? Asking for a friend....

Now.  90/share from 120/share previously. I think the market realized the roadblock of a divided Senate. Will throw in some play money to see what happens long-term. Maybe the value has normalized and itíll slow trek up with time.
« Last Edit: March 10, 2021, 10:27:31 PM by Abe »