April 29, 2020

iShares Global Clean Energy ETF (ICLN) - ESG meets high returns

iShares Global Clean Energy ETF (ICLN) - ESG meets high returns

The Global Clean Energy ETF is a passive fund which tracks the S&P Global Clean Energy Index, in an optimised fashion. The iShares range of passive tracker funds are generally viewed as extremely good value for money. However, the Global Clean Energy ETF comes in at a relatively more expensive, with an ongoing fee of 0.46%. This is still a far cry from some of the actively managed funds in the clean energy space but an outlier in iShares' own range.

Looking back, the Global Clean Energy ETF was created before the peak of the financial crisis, meaning the all-time returns are extremely poor. As of December 31st 2019, the performance since inception is -69.85%. However, the one-year performance comes in at 43.81%. The three-year performance sits happily at 58.33%.

Price history from 4th March 2019 to 4th March 2020

The price has taken a hit from concerns over COVID-19 and the impact this pandemic is having on markets across the world. As this is a global tracker we can see exposures to multiple regions. As of March 3rd 2020, 11.85% of the fund is invested in China and 43.71% invested in America, with the remaining amount distributed across multiple regions. The index also has a fairly even split between Utility and Energy companies, with a small amount of cash held as a hedge.

Source: iShares

The iShares Global Clean Energy ETF is a potent mix of relatively high returns, large amounts of market risk, and a strong thematic commitment. There is a limited selection of ETFs which aim to align your investments with bettering the environment. As a result you may struggle to find lower-risk alternatives with the same vast investment exposure.

At Genuine Impact, we quantitatively rank funds based on their fundamental performance factors. We highlight the best in class funds, based on Returns, Risk, and Fees. Maximising your gains, reducing your risk and keeping the fees low to make sure your returns aren't impacted.

Genuine Impact helps long term investors better invest with analysis of fundamental data from companies and funds. Our comments above only look at historical fundamental data and don't take any current daily news or press releases into consideration. We do not provide any research recommendations. Please contact hello@genuineimpact.io if you have any questions.

Alister Sneddon

Alister Sneddon

CTO and Co-Founder

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