ACES - 3 Energy Stocks That Could Make You a Millionaire by 2025
2023-05-09 07:52:51 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One of the biggest investment opportunities of the next decade will be green energy stocks . As global leaders and organizations look to significantly reduce emissions and fight climate change issues, green energy could become among the most important investment ideas investors aren’t thinking about enough right now.
Indeed, there’s plenty of progress happening on this front right now. Recently, President Joe Biden signed the Inflation Reduction Act into law, which included $370 billion worth of federal investment into renewable energy over the next decade. Also, according to the International Energy Agency, more than a third of the world’s electricity will come from renewables by 2025.
Thus, it just makes sense to have part of your portfolio dedicated to green energy stocks. In fact, some of the best ways to do that is with well-diversified ETFs, such as the following.
ACES ALPS Clean Energy ETF$42.25 ICLN iShares Global Clean Energy ETF$18.58 QCLN First Trust NASDAQ Clean Edge Green Energy Index Fund$45.72
ALPS Clean Energy ETF (ACES)
Exchange traded funds (ETFs) play an essential role for many investors. These highly-diversified low-cost funds provide passive investors with the ability to create a portfolio without doing a tremendous amount of research. Notably, many top ETFs are also very low-cost, and I’d put the ALPS Clean Energy ETF (NYSEARCA: ACES ), with an expense ratio of just 0.55% and a cost of around $42 per share, in this bucket.
This ETF provides substantial exposure to a wide range of green energy stocks. It attempts to mirror its underlying index, the CIBC Atlas Clean Energy Index. Some of its top holdings include First Solar (NASDAQ: FSLR ), Brookfield Renewable (NYSE: BEP ), Tesla (NASDAQ: TSLA ), Enphase Energy (NASDAQ: ENPH ), Albemarle (NYSE: ALB ), Lucid Group (NASDAQ: LCID ), and Plug Power (NASDAQ: PLUG ) to name a few. From a current price of under $42, I’d like to see the stock trade closer to $50 in the near-term.
iShares Global Clean Energy ETF (ICLN)
With an expense ratio of 0.4%, the iShares Global Clean Energy ETF (NASDAQ: ICLN ) offers exposure to green energy stocks that produce solar, wind, and other renewable sources of energy. This is among the most cost-effective green energy funds, making this ETF perfect for those looking to build a portfolio on a budget.
Some of its top holdings include Enphase Energy, SolarEdge (NASDAQ: SEDG ), First Solar, Orsted (OTCMKTS: DNNGY ), Consolidated Edison (NYSE: ED ), and dozens more. After a bumpy ride, it appears ICLN just caught strong double bottom support at $18.25. From here, I’d like to see it retest $21.50 highs again shortly.
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)
Another interesting fund to consider is the First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ: QCLN ). With an expense ratio of 0.58%, the fund seeks investment results that correspond to the price and yield of the Nasdaq Clean Edge Green Energy Index. Some of its top holdings include Tesla Enphase Energy, First Solar, Albemarle. Plug Power, SunPower and dozens more.
Technically, QCLN is another oversold, beaten-down fund that currently sits at major support dating back to May 2022. In fact, each time the fund reaches this point, it tends to run about $10 to $15 higher. It again appears ready to do it again. Keep this top green energy ETF on watch.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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