India is not an exception; clean energy is turning into a hot issue all around. As more people pay sustainability top priority, investors are now seeking the best clean energy ETF choices to increase their wealth while helping the environment.
Purchased and sold on the stock market, an ETF—also known as Exchange Traded Funds—is a collection of stocks. Mostly investing in companies engaged in solar, wind, hydro, and other green energy sources, a clean energy ETF.
Why should one make investments in clean energy?
The future is clean energy. Furthermore, pushed for by the Indian government are more projects involving renewable energy. Investing in the top clean energy ETF helps you to support environmentally friendly businesses.
- Funding an expanding sector
- Spread your portfolio to be diverse.
- Expanding knowledge of world green energy giants
Characteristics of the Superior Clean Energy ETF
Here’s what you should search for while deciding which clean energy ETF is best:
- Good over three to five years past performance
- Low expense ratio lets more of your money remain invested.
- Ownerships in leading renewable energy corporations
- Worldwide awareness, particularly in US and European markets
- Good liquidity for simple selling and purchase
Popular Clean Energy ETFs suitable for Indian Investors
Indian investors can find some of the best clean energy ETF choices available via foreign platforms here:
- iShares Global Clean Energy ETF (ICLN) funds top clean energy companies all around.
- Focused mostly on solar power companies, Invesco Solar ETF (TAN)
- First Trust NASDAQ Clean Edge Green Energy ETF (QCLN) combines solar, wind, and battery technologies firms
- SPDR S&P Kensho Clean Power ETF (CNRG) covers several innovative tech-driven clean power companies.
Although these ETFs are registered in the US, Indian brokers that provide international investing allow access to them.
Remembering Things
Before making the best clean energy ETF investment, think through:
- Given most clean energy ETFs are USD, there is currency risk.
- Variability of the renewable industry’s market
- Government policies influencing the progress in clean energy
- Investment horizon: Long-term investors would find better advantage
Who ought to make investments?
- The ideal clean energy ETF fit for young investors with a long-term perspective
- Individuals concerned in the environment
- People who wish for worldwide diversification
- Investors seeking sectors with high potential
Last Notes
Investing in the best clean energy ETF allows you to participate in the fast-expanding clean energy industry. For those who wish to mix responsibility with returns, this is a wise choice. Before making any investment, always do your homework or consult a financial advisor.
