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

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For investors seeking momentum, Fidelity Clean Energy ETF (FRNW - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 97.33% from its 52-week low price of $11.25/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

FRNW in Focus

The underlying Fidelity Clean Energy Index reflects the performance of a global universe of companies across the market capitalization spectrum that distribute, produce or provide technology or equipment to support the production of energy from solar, wind, hydrogen and other renewable sources. The product charges 40 bps in annual fees (see: All Alternative Energy ETFs).

Why the Move?

The increasing focus on finding alternative energy sources and diminishing global reliance on fossil fuels has resulted in a surge in investment in clean energy sources. Surging AI adoption and growing global power needs are creating powerful long-term tailwinds for clean energy funds. Additionally, the continued decline in renewable energy costs paints a favorable long-term outlook for clean energy funds.

More Gains Ahead?

FRNW might continue its strong performance in the near term, with a positive weighted alpha of 71.05 (as per Barchart.com), which gives cues of a further rally.


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