ICLN: Clean Energy May Lack Sustainability – Uncovering This Momentum Trade Opportunity

Madmaxer/iStock via Getty Images Investment Thesis "Green" energy is a prevalent theme among everyday investors fueled by a ‘common-sense’ thought process. ‘Save the world from climate change. Solve the energy crisis. Do it or you’ll miss out on the fruits of energy revolution.’ Saving the world from crisis while making money sounds exciting on paper. And yet, as Benjamin Felix , Portfolio Manager and Head of Research at PWL Capital would say , If you’re excited about an investment, it’s probably not a good investment. I believe the iShares Global Clean Energy ETF (NASDAQ: ICLN ) is unlikely to benefit fund investors significantly. According to my analysis, while promising momentum characteristics may exist, the fund poses serious risks. Whether it’s the lackluster portfolio formation, political risks, historically sharp fluctuations in performance… ICLN offers long-term investors a horrible past and lackluster prospects going forward. As a result, recent performance may lack sustainability, lowering the fund’s rating to a Sell. ICLN Strategy & Portfolio iShares Global Clean Energy captures solar, wind, hydrogen, geothermal, and biofuel alternative energy companies. It holds 97 firms with a dividend yield of 0.87%, and an expense ratio of 0.40%. This passive indexed, $5.14 billion AUM Blackrock-sponsored […]

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