News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Asset Management

Green energy stocks and ETFs are ready to shine

Renewable energy stocks are learning to stand on their own without subsidies, and are among the strongest performers this year

A windfarm on Zhoushan Island, Zhejiang Province, China
A windfarm on Zhoushan Island, Zhejiang Province, China Photo: Getty Images

In the past, renewable energy-sector exchange-traded funds have consistently underperformed the S&P 500 and Nasdaq Composite. The clouds, however, may be starting to lift for the sector.

The past five years haven’t been good to clean-energy stocks. The Invesco Solar ETF, comprised of 22 various solar industry companies, fell 41.3% over that period, while the iShares Global Clean Energy ETF, the largest exchange-traded fund in the US investing in clean energy, dropped 9.2%, well below the S&P 500’s 13.5% rise.

WSJ Logo