What are alternative energy ETFs?

Definition: Alternative energy ETFs are funds that invest in alternative energy companies. The most popular and most common industry in this category is solar energy, although wind, hydroelectric, and geothermal energies are also represented here.

Should you invest in a commodity ETF?

ETFs holding energy stocks have exposure to commodity prices but are ultimately still equities. For those looking for an energy play with lower correlation to equity markets, commodity ETFs like USO could be a solution. This ETF holds a portfolio of West Texas Intermediate (WTI) crude oil futures contracts and charges a heftier 0.81% expense ratio.

Are alternative energy companies making a profit?

Alternative energy companies, which sell or use everything from solar energy to hydrogen and electric batteries, aim to make a profit by transforming the way societies power themselves. This is happening amid rising global concern about climate change, and also amid long-term forecasts of dwindling fossil fuel supplies.

What attracts investors to the alternative energy space?

A gamut of factors brings investors’ attention to the alternative energy space. Rallying oil prices, President Joe Biden’s endeavors and pledge to control emissions in half by 2030 along with growing awareness and concerns regarding climate change are some of the key catalysts attracting investors.