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Is Invesco Global Clean Energy ETF (PBD) a Strong ETF Right Now?
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The Invesco Global Clean Energy ETF (PBD - Free Report) was launched on 06/13/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Alternative Energy ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Invesco, PBD has amassed assets over $201.74 million, making it one of the average sized ETFs in the Alternative Energy ETFs. PBD seeks to match the performance of the WilderHill New Energy Global Innovation Index before fees and expenses.
The WilderHill New Energy Global Innovation Index is comprised of companies engaged in the business of the advancement of cleaner energy and conservation.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.75% for this ETF, which makes it one of the most expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.75%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Stem Inc (STEM - Free Report) accounts for about 1.48% of the fund's total assets, followed by First Solar Inc (FSLR - Free Report) and Plug Power Inc (PLUG - Free Report) .
The top 10 holdings account for about 3.95% of total assets under management.
Performance and Risk
The ETF has lost about -34.67% and is down about -37.40% so far this year and in the past one year (as of 10/17/2022), respectively. PBD has traded between $17.65 and $32.33 during this last 52-week period.
The fund has a beta of 1.31 and standard deviation of 36.87% for the trailing three-year period, which makes PBD a high risk choice in this particular space. With about 138 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Global Clean Energy ETF is a reasonable option for investors seeking to outperform the Alternative Energy ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD - Free Report) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $5.80 billion in assets, iShares ESG Aware MSCI USA ETF has $19.99 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Alternative Energy ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Invesco Global Clean Energy ETF (PBD) a Strong ETF Right Now?
The Invesco Global Clean Energy ETF (PBD - Free Report) was launched on 06/13/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Alternative Energy ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Invesco, PBD has amassed assets over $201.74 million, making it one of the average sized ETFs in the Alternative Energy ETFs. PBD seeks to match the performance of the WilderHill New Energy Global Innovation Index before fees and expenses.
The WilderHill New Energy Global Innovation Index is comprised of companies engaged in the business of the advancement of cleaner energy and conservation.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.75% for this ETF, which makes it one of the most expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.75%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Stem Inc (STEM - Free Report) accounts for about 1.48% of the fund's total assets, followed by First Solar Inc (FSLR - Free Report) and Plug Power Inc (PLUG - Free Report) .
The top 10 holdings account for about 3.95% of total assets under management.
Performance and Risk
The ETF has lost about -34.67% and is down about -37.40% so far this year and in the past one year (as of 10/17/2022), respectively. PBD has traded between $17.65 and $32.33 during this last 52-week period.
The fund has a beta of 1.31 and standard deviation of 36.87% for the trailing three-year period, which makes PBD a high risk choice in this particular space. With about 138 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Global Clean Energy ETF is a reasonable option for investors seeking to outperform the Alternative Energy ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD - Free Report) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $5.80 billion in assets, iShares ESG Aware MSCI USA ETF has $19.99 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Alternative Energy ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.