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Is Invesco Global Clean Energy ETF (PBD) a Strong ETF Right Now?
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Making its debut on 06/13/2007, smart beta exchange traded fund Invesco Global Clean Energy ETF (PBD - Free Report) provides investors broad exposure to the Alternative Energy ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $202.23 million, making it one of the average sized ETFs in the Alternative Energy ETFs. PBD, before fees and expenses, seeks to match the performance of the WilderHill New Energy Global Innovation Index.
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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.75%.
PBD's 12-month trailing dividend yield is 3.02%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Zhejiang Leapmotor Technologies Ltd accounts for about 1.24% of the fund's total assets, followed by Sma Solar Technology Ag (S92) and Cadeler A/s (CADLR).
PBD's top 10 holdings account for about 5.17% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Global Clean Energy ETF has added about 3.21% so far, and is down about -13.63% over the last 12 months (as of 04/24/2023). PBD has traded between $17.65 and $25.04 in this past 52-week period.
The ETF has a beta of 1.32 and standard deviation of 32.87% for the trailing three-year period, making it a high risk choice in the space. With about 143 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Global Clean Energy ETF is an excellent option for investors seeking to outperform the Alternative Energy ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
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 $7.42 billion in assets, iShares ESG Aware MSCI USA ETF has $13.93 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?
Making its debut on 06/13/2007, smart beta exchange traded fund Invesco Global Clean Energy ETF (PBD - Free Report) provides investors broad exposure to the Alternative Energy ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $202.23 million, making it one of the average sized ETFs in the Alternative Energy ETFs. PBD, before fees and expenses, seeks to match the performance of the WilderHill New Energy Global Innovation Index.
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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.75%.
PBD's 12-month trailing dividend yield is 3.02%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Zhejiang Leapmotor Technologies Ltd accounts for about 1.24% of the fund's total assets, followed by Sma Solar Technology Ag (S92) and Cadeler A/s (CADLR).
PBD's top 10 holdings account for about 5.17% of its total assets under management.
Performance and Risk
Year-to-date, the Invesco Global Clean Energy ETF has added about 3.21% so far, and is down about -13.63% over the last 12 months (as of 04/24/2023). PBD has traded between $17.65 and $25.04 in this past 52-week period.
The ETF has a beta of 1.32 and standard deviation of 32.87% for the trailing three-year period, making it a high risk choice in the space. With about 143 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco Global Clean Energy ETF is an excellent option for investors seeking to outperform the Alternative Energy ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
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 $7.42 billion in assets, iShares ESG Aware MSCI USA ETF has $13.93 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.