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5 ETFs to Invest in Our Earth

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Every year, Earth Day reminds us of the significance of keeping our planet clean and demonstrates support for environmental protection. The theme of Earth Day this year is, “Invest in our Planet,” which focuses on making the climate greener and taking proactive measures to protect Mother Earth, given that global warming is on the rise.

In order to tap this trend, many investors are looking to eliminate carbon exposure from their portfolios and invest in cleaner alternatives on Earth Day. For them, Invesco MSCI Sustainable Future ETF (ERTH - Free Report) , Etho Climate Leadership US ETF (ETHO - Free Report) , iShares Global Clean Energy ETF (ICLN - Free Report) , Global X CleanTech ETF (CTEC - Free Report) and ALPS Clean Energy ETF (ACES - Free Report) could make for excellent portfolios for the long term.

Countries across the globe are scaling their renewable energy investments. The United States has been at the forefront of making the climate clean with President Joe Biden’s pledge to go greener. The President has vowed to build out a "modern and sustainable infrastructure" to reach a carbon-free energy sector in the United States by 2035. He plans to pump $2 trillion into green energy over four years to build solar panels, charging stations and more, and aims for net-zero emissions by 2050 (read: Alternative Energy ETFs Sizzling With Opportunities: Here's Why).

The $2 trillion infrastructure plan also includes spending up to $174 billion to encourage Americans to switch to cars and trucks that run on electricity, not gasoline or diesel. Additionally, Biden recently proposed a big boost to the global climate fight by injecting more than $11 billion into efforts to help other countries address global warming.

Other countries are also making progress to protect the Earth by deep carbon cuts. China aims to go carbon neutral by 2060, while the United Kingdom has set the world’s most ambitious climate change target of cutting emissions by 78% by 2035 from the 1990 levels. The European Union pledged to cut carbon emissions by at least 55% by 2030 compared with the 1990 levels. Further, a number of firms across the globe have been investing heavily in clean-tech business.

Invesco MSCI Sustainable Future ETF (ERTH - Free Report)

Invesco MSCI Sustainable Future ETF provides exposure to the companies that focus on offering products or services that contribute to a more environmentally sustainable economy by making more efficient use of global resources. It tracks the MSCI Global Environment Select Index and holds 155 stocks in its basket. American firms take the largest share at 36%, while China rounds off the next spot with 17% of assets.

Invesco MSCI Sustainable Future ETF has AUM of $420 million and charges 55 bps in annual fees. It trades in an average daily volume of 23,000 shares.

Etho Climate Leadership US ETF (ETHO - Free Report)

Etho Climate Leadership US ETF is the first diversified, fossil-free, sustainable and responsible U.S. ETF that invests in the companies that are more climate efficient and ESG sustainable than their peers by tracking the Etho Climate Leadership Index. It holds a broad basket of 274 securities.

Etho Climate Leadership US ETF has amassed $182.3 million in its asset base while trading in an average daily volume of around 6,000 shares. It charges 45 bps in annual fees from investors.

iShares Global Clean Energy ETF (ICLN - Free Report)

iShares Global Clean Energy ETF provides global exposure to 83 companies that produce energy from solar, wind and other renewable sources by tracking the S&P Global Clean Energy Index. It is concentrated in the top firms. The United States and China take the top two spots in terms of country exposure with 38.1% and 14.2% share, respectively.

iShares Global Clean Energy ETF has AUM of $5.6 billion and charges 42 bps in annual fees and expenses. It trades in a heavy volume of 6.2 million shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Clean Energy ETFs Shine Amid Ukraine Crisis).

Global X CleanTech ETF (CTEC - Free Report)

Global X CleanTech ETF seeks to invest in companies that stand to benefit from the increased adoption of technologies that inhibit or reduce negative environmental impacts. This includes companies involved in renewable energy production, energy storage, smart grid implementation, residential/commercial energy efficiency, and the production and provision of pollution-reducing products and solutions. Global X CleanTech ETF follows the Indxx Global CleanTech Index and holds 40 stocks in its basket.

Global X CleanTech ETF has accumulated $125 million in its asset base and charges 50 bps in annual fees. It trades in a volume of 63,000 shares a day on average.

ALPS Clean Energy ETF (ACES - Free Report)

ALPS Clean Energy ETF seeks to track the performance of an index comprising U.S. and Canada-based companies that primarily operate in the clean energy sector. It follows the CIBC Atlas Clean Energy Index and holds 45 stocks in its basket (read: 5 Best Sector ETFs of March).

ALPS Clean Energy ETF has amassed $757.4 million in its asset base and charges 55 bps in fees per year from investors. It trades in an average daily volume of 77,000 shares.

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