Wind Energy

Wind Energy Funds and ETFs invest the majority of their assets in... Wind Energy Funds and ETFs invest the majority of their assets in companies that harness energy or part of the wind industry more generally. Wind is 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 wind energy is that it is naturally occurring, does not pollute, and cannot be exhausted. Wind Energy Funds and ETFs typically own companies that produce wind turbines, but can also include other companies in the sector. Wind Energy 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 becoming more efficient so that consumers and businesses see this alternative energy source as cost-effective. Wind Energy 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 a reliance on fossil fuels. Last Updated: 11/27/2024 View more View less

Wind Energy Funds and ETFs invest the majority of their assets in companies that harness energy or part of the wind industry more generally. Wind is seen as a key potential alternative energy... Wind Energy Funds and ETFs invest the majority of their assets in companies that harness energy or part of the wind industry more generally. Wind is 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 wind energy is that it is naturally occurring, does not pollute, and cannot be exhausted. Wind Energy Funds and ETFs typically own companies that produce wind turbines, but can also include other companies in the sector. Wind Energy 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 becoming more efficient so that consumers and businesses see this alternative energy source as cost-effective. Wind Energy 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 a reliance on fossil fuels. Last Updated: 11/27/2024 View more View less