Biofuels

Biofuels Funds and ETFs invest the majority of their assets in companies... Biofuels Funds and ETFs invest the majority of their assets in companies that produce energy from biofuels or are part of the biofuel supply chain. Biofuels are considered a renewable energy source, and their energy comes from plants, algae or animal waste. Biofuels are seen as a key potential alternative energy source. Alternative energy is increasingly receiving more attention from investors due to the threat posed by climate change and the need to move away from fossil fuels. An important characteristic of biofuels is that they are usually considered to be carbon-neutral. Biofuels Funds and ETFs typically own companies that produce biofuels feedstock. Biofuels Funds and ETFs can be passively or actively managed, and depending on their mandate, may invest across a wide range of geographies and market capitalizations. A key challenge for the industry is improving sustainability because biofuels are associated with deforestation. Biofuels Funds and ETFs can be considered to be somewhat higher risk than fossil fuel investments, simply because the industry is still 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 the reliance on fossil fuels. Last Updated: 11/22/2024 View more View less

Biofuels Funds and ETFs invest the majority of their assets in companies that produce energy from biofuels or are part of the biofuel supply chain. Biofuels are considered a renewable energy source, and... Biofuels Funds and ETFs invest the majority of their assets in companies that produce energy from biofuels or are part of the biofuel supply chain. Biofuels are considered a renewable energy source, and their energy comes from plants, algae or animal waste. Biofuels are seen as a key potential alternative energy source. Alternative energy is increasingly receiving more attention from investors due to the threat posed by climate change and the need to move away from fossil fuels. An important characteristic of biofuels is that they are usually considered to be carbon-neutral. Biofuels Funds and ETFs typically own companies that produce biofuels feedstock. Biofuels Funds and ETFs can be passively or actively managed, and depending on their mandate, may invest across a wide range of geographies and market capitalizations. A key challenge for the industry is improving sustainability because biofuels are associated with deforestation. Biofuels Funds and ETFs can be considered to be somewhat higher risk than fossil fuel investments, simply because the industry is still 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 the reliance on fossil fuels. Last Updated: 11/22/2024 View more View less