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Clean Energy ETF (PBW) Hits New 52-Week High

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For investors seeking momentum, Invesco WilderHill Clean Energy ETF ((PBW - Free Report) ) is probably on the radar. The fund just hit a 52-week high and soared 121.3% from its 52-week low of $13.19 per share.

Are more gains in store for this ETF? Let’s briefly examine the fund and its near-term outlook to gain a better understanding of where it might be headed:

PBW in Focus

The underlying WilderHill Clean Energy Index provides exposure to U.S.-listed companies involved in the development and conservation of clean energy. PBW ETF charges 65 bps in annual fees (see: all the Alternative Energy ETFs here).

Why the Move?

The U.S. clean energy industry has been booming lately, thanks to the rapidly soaring demand for clean electricity from AI-driven data center growth across the United States, the electrification of the transportation sector, and the declining installation cost of renewables amid the nationwide decarbonization momentum.

Along with these industrial fundamentals playing in favor of the clean energy industry, the interest rate cut executed by the Federal Reserve last week can also be expected to have driven the upside in clean energy stocks and thereby clean energy ETFs like PBW.

More Gains Ahead?

PBW might remain strong, given its positive weighted alpha of 66.13 (per barchart.com). The ETF still offers some potential for investors seeking to benefit from its surge.


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