The I-Shares Clean Energy ETF is a fund that tracks companies which develop and create clean energy. The Fund looks ready to break out.

Overview

The iShares Global Clean Energy ETF is a combined fund specialising in renewable & sustainable energy companies across the world. Major players include Enphase Energy (9.74%), Vestas Wind (6.13%), Plug Power (4.01%) and many more other names. The total combined net assets for the fund are $6.4bn, More information about how this fund is diversified can be found here.

Technicals

From a technical aspect the fund looks to want to break higher, however it could turn lower before the anticipated breakout. Looking at the chart, support it below on the trendline at £9.50. A break of this trendline could mean more consolidation, but the outlook wouldn’t turn negative unless the lows of £7.45 were broken. Towards the upside, tough resistance sits at £10.89, but a break here on a daily or weekly timeframe could see this ETF move higher towards the 2021 highs as £15.00. A break here could take the fund towards the all-time highs of £17.40. Overtime, this fund should perform well given its structure and the way the world is going.

Summary

Comment - Given the Russia-Ukraine tensions, Europe’s drive to become a sustainable continent is more important than ever. As a result, the clean energy ETF should do quite well in the medium-term future as governments look for alternative sustainable ways to create energy. Where better than to look at the constitutes within the clean energy ETF. For example, Vestas wind systems is the largest turbine manufacturer in Europe, therefore it’s pretty clean the future is probably bright. The US is also putting polices in places to ensure a more sustainable future, which again, will see the components of the ETF benefit.