LON:INRG | Renewable Energy ETF: INRG - Investing In Clean Energy.

6th Oct '20 by William K

9 comments 1852 reads

Leaving aside one's green credentials, there may well be profits to be made from investing in clean energy via an ETF like £INRG (or ICLN for US investors). Over the last 2 years, £INRG has achieved a return of 123% compared with a return of 65% for the Nasdaq 100 ETF £EQQQ. There is a useful article on Fool.com giving the arguments for and against investing in clean energy. For those who don't have the time to read it, the summary is:

Arguments for:

Renewable energy will be cheaper than fossil fuel energy by 2023

Political imperatives regarding climate change may ban all other sources of power apart from renewable energy.

Solar panels are becoming more efficient (currently 16-24%)

Battery technology is improving

Arguments against:

The sun doesn't always shine and the wind doesn't always blow so battery storage is needed to ensure constant power supply.

Renewable energy is currently more expensive (150%-200%) than fossil fuel energy.

In summary

Renewable energy is the future. The market likes it now. (I hold both $ICLN and £INRG.)

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twiggytwo

13th Oct '20

I have to agree. It appears ETFs are the best way to go to invest in renewable energy. Also looking at Kraneshares ETFs for China

William K

Yes. KWEB is also outperforming the Nasdaq. China looks like a good place to invest at the moment. The spreads are mainly around 0.5% so of some interest. Thank you.

pravin_h

3rd Nov '20

Hi, I've invested n INRG before, and I've recently bought back in. Wonder if the US election results will influence tomorrow's price - Biden's clearly more pro green-energy than Trump. I prefer investing in ETFs/Funds compared to directly investing in shares, but the no. of Green Energy ETFs out there is limited... Has anyone looked at Lyxor's New Energy - it tracks the World Alternative Energy Total Return Index??

The Lyxor ETF (DR) is relatively new and there isn't much information out about it yet. It seems to be tracking the world's top 40 green energy companies, rather like ICLN and INRG so I doubt that it will have any significant advantage over them. Joe Biden may well be better for green energy than Donald Trump in the near future. In the longer term, as green energy gets relatively cheaper, I don't think it matters which of the two becomes president.

Sean Burke

10th Nov '20

seems ideal to get E.T.F certainly buying into one energy company would be far to risky for me . I'm beginning to just buy ETF 's now . these are definitely for me the way to invest and have less exposure to volatility single shares have to much risk for me one bad quarterly figures or some small piece of negativity and all the research and effort all to waste .

11th Nov '20

This sums up my current approach Sean. I believe ETFs, if carefully chosen, can reduce risks without a comparable reduction in reward. As you say, single shares can lose a lot of money in a short space of time on a bit of bad news, even after you've spent countless hours researching them, whereas this tends not to happen with ETFs.

3rd Mar '21

Hi, is anyone following the decline in INRG's sp just now? Someone posted on the free ADVFN bb that this may be partly because it has a large holding in PLUG. PLUG's results are due tomorrow apparently, so this trend could continue for a while. This is a long-term hold for me at least.

Giles Knap

4th Mar '21

Yes I noticed the decline. I got out at the beginning of Feb after gaining 120% over the last couple of years.

I'm afraid that the green energy boom is a over bought now. £INRG has a number of high flying US tech stocks, e.g. see £ENPH as well as £PLUG. These are caught in the Tech bubble which may well be at is end. I also sold all US tech in Feb and to date have avoided a 25% decline.

Maybe this is a blip and the bubble has some legs yet. But it does not look good over last 2 weeks.

Steveawc

13th Apr '21

I held £INRG as part of a roboadvisor portfolio which exited out the fund in early Feb which was well timed, however I've bought back in on my self-manged ISA.

I certainly don't think the green energy boom is overbought but I agree this ETF was hit hard. It was absolutely overallocated in $PLUG (almost 12% earlier this year) and US tech-related stocks

There is going to be an ever increasing push from government regulations for green energy tech so it's not going away anytime soon. A lot of factors went into the pullback earlier in the year so I'm very much buying the dip and holding long-term

Renewable Energy ETF: INRG - Investing in clean energy.

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William K

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