Alternative Energy

Alternative Energy Funds and ETFs invest the majority of their assets in... Alternative Energy Funds and ETFs invest the majority of their assets in companies that produce alternatives to fossil fuels (i.e., oil and gas, and coal). Key alternative energy sources include wind, biofuels, solar, and hydropower. Some analysts include nuclear power as an alternative energy source but others contest this. These funds can be actively or passively managed and may invest, depending on their mandate, in companies of varying market caps and geographies. Alternative Energy Funds and ETFs have become increasingly popular due to the current and forecasted effects of climate change. There’s pressure from governments and citizens to move away from fossil fuels, and investors see significant opportunities in alternatives. Alternative Energy Funds and ETFs can be considered to be somewhat higher risk than fossil fuel investments, simply because alternatives are in the earlier stages of development and many companies haven’t yet reached profitability or proven their technologies. However, the upside to these firms is potentially quite large given how rapidly society needs to move away from a reliance on fossil fuels. Last Updated: 12/27/2024 View more View less

Alternative Energy Funds and ETFs invest the majority of their assets in companies that produce alternatives to fossil fuels (i.e., oil and gas, and coal). Key alternative energy sources include wind, biofuels, solar,... Alternative Energy Funds and ETFs invest the majority of their assets in companies that produce alternatives to fossil fuels (i.e., oil and gas, and coal). Key alternative energy sources include wind, biofuels, solar, and hydropower. Some analysts include nuclear power as an alternative energy source but others contest this. These funds can be actively or passively managed and may invest, depending on their mandate, in companies of varying market caps and geographies. Alternative Energy Funds and ETFs have become increasingly popular due to the current and forecasted effects of climate change. There’s pressure from governments and citizens to move away from fossil fuels, and investors see significant opportunities in alternatives. Alternative Energy Funds and ETFs can be considered to be somewhat higher risk than fossil fuel investments, simply because alternatives are in the earlier stages of development and many companies haven’t yet reached profitability or proven their technologies. However, the upside to these firms is potentially quite large given how rapidly society needs to move away from a reliance on fossil fuels. Last Updated: 12/27/2024 View more View less