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After the more than $1 trillion infrastructure overhaul package passed Friday that would revive U.S. transportation, broadband and utilities accomplishing a piece of President Joe Biden’s agenda, all are looking forward to the ratification of the larger piece of his agenda, i.e., a $1.75 trillion investment in the social safety net and climate policy.
President Biden has expansionary plans for clean energy. He has a plan — a Clean Energy Revolution — to address the issue of climate emergency. He sees America as becoming a 100% clean energy economy by 2035 and having net zero emission by 2050 (read: Time for Clean Energy ETFs?).
Vans, sport utility vehicles and trucks priced up to $80,000 are now eligible for the full tax credit. The previous bill capped credits for vans priced at $64,000, SUVs priced at $69,000 and trucks priced at $74,000, per a CNBC article.
The transportation sector causes immense U.S. greenhouse gas emissions, making up about one-third of emissions ever year. The transition from gas vehicles to electric cars and trucks will be crucial to battle climate change.
The Democrats’ proposal contains a $4,500 tax incentive with the purchase of an electric vehicle made at a unionized factory. If this is not enough, U.S. Treasury Secretary Janet Yellen recently said that she will back an effort by top U.S. regulators to evaluate the likely risk that climate change is causing to America’s financial system.
Yellen said the regulatory review will scrutinize whether banks and other lending institutions are correctly assessing the risks to financial stability. Notably, the United States once again entered the Paris climate accord – adopted in 2016 – in the Biden era, after withdrawing itself in the Trump era.
In any case, clean energy has become one of the most-crowded trades in recent times. Investors appear to be bothered about the future of the environment and the effect it might have on their investing portfolio.
ETFs in Focus
Simplify Volt Robocar Disruption And Tech ETF (VCAR - Free Report)
The Simplify Volt RoboCar Disruption and Tech ETF seeks to concentrate in those few disruptive companies poised to dominate autonomous driving and then enhance the concentrated exposures with options. The fund charges 95 bps in fees (read: Is It Better to Buy Electric Vehicle ETFs Than Rivian IPO?).
KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report)
The underlying Bloomberg Electric Vehicles Index tracks the equity market performance of companies engaged in the production of electric vehicles or their components or engaged in other initiatives that may change the future of mobility. The fund – which is heavy on Tesla (6.43%), General Motors (4.4% weight), Ford Motors (3.35%) – charges 72 bps in fees.
iShares Global Clean Energy ETF (ICLN - Free Report) – Zacks Rank #2 (Buy)
The underlying S&P Global Clean Energy Index tracks the performance of approximately 30 of the most liquid and tradable global companies which represent the listed clean energy universe. The fund charges 42 bps in fees.
This ETF offers exposure to companies whose products and services are driving innovation in the clean energy sector, which includes the areas of solar, wind, geothermal and hydroelectric power. It charges 45 bps in fees.
Image: Bigstock
Climate Policy Bill on the Way? ETFs to Gain
After the more than $1 trillion infrastructure overhaul package passed Friday that would revive U.S. transportation, broadband and utilities accomplishing a piece of President Joe Biden’s agenda, all are looking forward to the ratification of the larger piece of his agenda, i.e., a $1.75 trillion investment in the social safety net and climate policy.
President Biden has expansionary plans for clean energy. He has a plan — a Clean Energy Revolution — to address the issue of climate emergency. He sees America as becoming a 100% clean energy economy by 2035 and having net zero emission by 2050 (read: Time for Clean Energy ETFs?).
Democratic lawmakers recently revealed a revised social spending and climate provision that expands an electric vehicle tax credit of up to $12,500 for more expensive cars and proposes a lower income cut-off for buyers eligible for the credit.
Vans, sport utility vehicles and trucks priced up to $80,000 are now eligible for the full tax credit. The previous bill capped credits for vans priced at $64,000, SUVs priced at $69,000 and trucks priced at $74,000, per a CNBC article.
The transportation sector causes immense U.S. greenhouse gas emissions, making up about one-third of emissions ever year. The transition from gas vehicles to electric cars and trucks will be crucial to battle climate change.
The Democrats’ proposal contains a $4,500 tax incentive with the purchase of an electric vehicle made at a unionized factory. If this is not enough, U.S. Treasury Secretary Janet Yellen recently said that she will back an effort by top U.S. regulators to evaluate the likely risk that climate change is causing to America’s financial system.
Yellen said the regulatory review will scrutinize whether banks and other lending institutions are correctly assessing the risks to financial stability. Notably, the United States once again entered the Paris climate accord – adopted in 2016 – in the Biden era, after withdrawing itself in the Trump era.
In any case, clean energy has become one of the most-crowded trades in recent times. Investors appear to be bothered about the future of the environment and the effect it might have on their investing portfolio.
ETFs in Focus
Simplify Volt Robocar Disruption And Tech ETF (VCAR - Free Report)
The Simplify Volt RoboCar Disruption and Tech ETF seeks to concentrate in those few disruptive companies poised to dominate autonomous driving and then enhance the concentrated exposures with options. The fund charges 95 bps in fees (read: Is It Better to Buy Electric Vehicle ETFs Than Rivian IPO?).
KraneShares Electric Vehicles & Future Mobility Index ETF (KARS - Free Report)
The underlying Bloomberg Electric Vehicles Index tracks the equity market performance of companies engaged in the production of electric vehicles or their components or engaged in other initiatives that may change the future of mobility. The fund – which is heavy on Tesla (6.43%), General Motors (4.4% weight), Ford Motors (3.35%) – charges 72 bps in fees.
iShares Global Clean Energy ETF (ICLN - Free Report) – Zacks Rank #2 (Buy)
The underlying S&P Global Clean Energy Index tracks the performance of approximately 30 of the most liquid and tradable global companies which represent the listed clean energy universe. The fund charges 42 bps in fees.
SPDR S&P Kensho Clean Power ETF (CNRG - Free Report)
This ETF offers exposure to companies whose products and services are driving innovation in the clean energy sector, which includes the areas of solar, wind, geothermal and hydroelectric power. It charges 45 bps in fees.
Invesco Solar ETF (TAN - Free Report) ) – Zacks Rank #3
The underlying MAC Global Solar Energy Index is comprised of companies in the solar energy industry. It charges 69 bps in fees.