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Global Clean Energy ETF (ICLN) Hits New 52-Week High

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For investors seeking momentum, iShares Global Clean Energy ETF (ICLN - Free Report) is probably on radar now. The fund just hit a 52-week high and is up nearly 17.9% from its 52-week low price of $8.31/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.

ICLN in Focus

This 29-stock fund looks to track the S&P Global Clean Energy Index. The expense ratio of the fund is 0.48%. First Solar, Huaneng Renewables Corporation and Enel Americas Adr Representing SA are the top three companies of the fund (see Alternative Energy ETFs here).

The United States accounts for about 29.5% of the fund while China (27.3%), New Zealand (9.59%) and Brazil (6.57%) are its top three countries.

Why the Move?

Several green or clean energy ETFs have delivered decent gains lately on growing demand for renewable energy. Clean energy is a key contributor to the electrical grid. U.S. Energy Information Administration (EIA) estimated that 50% of about 25 gigawatts (GW) of new utility-scale electric capacity added to the power grid during 2017 came from wind and solar sources.

UN report also noted that solar power investments are on the rise. Plus, China has been putting in immense efforts to harness renewable energy and even closed 40% of its factories that did not conform to emissions regulations. All these factors helped the fund in recent times.

More Gains Ahead? 

It seems that ICLN might stay strong in the near term given a positive weighted alpha of 15.40. As a result, there is still some promise for investors who want to ride on this surging ETF.

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