PBD - Popular clean energy ETF ICLN hits a new 6-month low

2023-05-04 09:50:24 ET

The iShares Global Clean Energy ETF ( NASDAQ: ICLN ), the world’s largest alternative green energy exchange traded fund, has fallen to a new 6-month trading low, with the ETF dropping nearly 16% from its 2023 trading high.

ICLN, with its $4.45B assets under management, now trades near $18.16, which is the lowest level the fund has seen since October 25 of 2022.

The ETF, which aims to offer exposure to companies that produce energy from solar, wind and other renewable sources, has declined a total of 15.9% from its 2023 peak. The fund has also dropped 23.8% since its 2022 trading high.

Along with the fall in its share value, ICLN has seen investor outflows as well. Over the course of 2023, ICLN has watched $267.6M exit the door.

As ICLN has hit a 6-month low, other green energy focused ETFs have also struggled as well. See below a grouping of other alternative energy ETFs along with their year-to-date performance:

• ALPS Clean Energy ETF ( ACES ) -7.8% .
• Invesco Solar ETF ( TAN ) -4.8% .
• Invesco MSCI Sustainable Future ETF ( ERTH ) -4.6% .
• First Trust NASDAQ Clean Edge Green Energy Index Fund ( QCLN ) -4.3% .
• Invesco Global Clean Energy ETF ( PBD ) -0.3% .

Seeking Alpha contributor Overlooked Opportunities views ICLN as a Sell , stating: “Clean energy has progressed significantly in the last few years, but decarbonization and net-zero emission goals are unrealistic, expensive, and time-consuming.”

In broader financial news, major averages tilted lower on Thursday as investors gauged whether the Fed tightening cycle was really over.

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