What is a Renewable Energy ETF?
As the name suggests, a renewable energy ETF is one Themed ETF containing stocks from the renewable energy sector. Often referred to as Clean Energy ETF or Renewable Energy ETF, the Exchange Traded Funds invest in a variety of companies that are active in the field of renewable energy. Renewable energies include the areas of solar energy, hydropower, wind power and hydrogen. IT companies from the field of power grid operation and management are also included in many a renewable energy ETF.
Most companies in which renewable energy ETFs invest come from the USA or China. However, Scandinavian countries such as Norway, Sweden and Denmark are also represented in the ETFs because they are very well positioned in the clean energy sector. energy supplier take the top position among the companies involved, as they supply both other companies and end consumers via their electricity networks. However, they are hot on their heels IT companies, which operate software systems for the operation of electricity networks or power plants. Usually take third place industrial companywhich provide for the production of solar systems, wind turbines, hydrogen fuel cells or processing plants.
