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Why Clean Energy ETFs Are Top Performers in 2020

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Clean energy ETFs are among the top performers this year as well, after a spectacular performance last year. This comes after a volatile decade when their performance was largely dependent on government subsidies and oil prices.

The cost of renewable energy generation has been falling in recent years with continued technological innovation, and that has started changing the competitive balance between clean and traditional energy.

Rising odds of a Biden victory have  further boosted these  stocks as he has pledged to spend $2 trillion to combat climate change. And, these ETFs have also benefited from an exponential surge in Tesla (TSLA - Free Report) , which is among the top holdings in many of these ETFs.

The Invesco Solar ETF (TAN - Free Report) holds companies in the solar energy industry. Vivint Solar (VSLR - Free Report) , SolarEdge Technologies (SEDG - Free Report) and Enphase Energy (ENPH - Free Report) are among its largest holdings.

The First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN - Free Report) holds US-listed firms involved in clean energy. Tesla and NIO (NIO - Free Report) are its top holdings. The Invesco WilderHill Clean Energy ETF (PBW - Free Report) holds companies involved in cleaner energy sources or energy conservation.

 To learn more about them, please watch the short video above.

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