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The iShares Global Clean Energy ETF is one of the top picks and most widely known ESG ETFs in the clean energy sector. The version of this fund in which you can invest here in the UK is the ICLN iShares Global Clean Energy ETF. The INLG option is available in the US market.
| ❓ What is iShares Global Clean Energy ETF stock symbol? | ICLN (USA), INRG (UK)? |
| 🤔 Can I buy iShares Global Clean Energy shares? | Yes, you can with an investment account |
| 📣 What is the expense ratio of iShares Global Clean Energy? | 0.40% |
| 🤑 Can I buy iShares Global Clean Energy shares? | Yes, you can with an investment account |
The objective of the iShares Global Clean Energy ETF is to seek to track the investment outcomes of an index comprised of worldwide equities in the clean energy sector.
Why investors target the iShares Global Clean Energy ETF
There are several reasons investors opt for the iShares Global Clean Energy ETF. As well as the fact that clean energy is a great growth opportunity, it can boost your passive income stream, and the eco-friendly atmosphere and climate are supercharged –
- Investors are granted exposure to companies that produce energy from renewable sources. Companies include those operating in the clean energy production sector (solar, wind, etc.) and the clean energy equipment and technology sectors. It includes established companies and companies in newly emerging markets
- Investors are able to target clean energy stocks worldwide.
- Investors are able to obtain a medium to long-term view of the clean energy global market sector.
Companies that produce carbon emissions over and above the threshold specified by the index are excluded.
The iShares Clean Energy ETF fund is operated under UCITS principles. The initials stand for “Undertakings for Collective Investment in Transferable Securities,” referring to a set of voluntary rules. They include constructing a diverse portfolio, publishing unequivocal guidance on fees, and taking measures to ensure an investor’s money is safeguarded.
Looking back at ESG ETF investing in 2021
The year 2021 was positive regarding ESG investing, but it wasn’t entirely without setbacks. At the beginning of the year, SRI (Socially Responsible Investing) and ESG funds enjoyed good momentum on the back of increased awareness of climate change and other topical environmental issues, and they performed well despite the ongoing COVID-19 pandemic. It was partly due to the fact that many ESGs lean towards growth stocks – a sector that performed well in the rally post-COVID.
SRI funds naturally tend to be more biased toward growth sectors than gas or oil. But it was these non-environmentally friendly stocks that many investors turned to as markets began recovering from worries over the pandemic.
The fact that ESG stocks – particularly those focused on Clean Energy – were adjusted downwards after inflation fuelled by rising demand in 2020, also came into play.
The disappointing result of the COP26 conference in Glasgow also fed concerns. In 2021, the iShares Global Clean Energy ETF UK and US funds combined had a total return loss of 23.8%. Their worst year yet.
However, with climate change and clean power issues likely to be at the forefront of a lot of SRI investors’ minds this year, now could be a good time to buy into the iShares Global Clean Energy UCTTS EFT with the price as low as it is, considering the brighter outlook for this year.
How to buy iShares ETFs
This blog focuses on the iShares global clean energy UCITS ETF GBP fund, which is only one of many SRI funds to which UK investors have access. But it’s important to consider the suitability of any ETF, ESG or otherwise, to ensure it aligns with your individual needs, ethics and tolerance to risk. If you are a newbie investor, it’s worth taking independent financial advice.
When considering investing, though, especially for the first time, you need to fully understand and take on board that any investment, SRI or not, is a risk. Never forget that your initial investment amount and any returns can never be guaranteed. You also need to take tax into consideration. It’s one of the reasons that ISA tax wrappers are so popular.
There are four ways you can go about buying an iShare Global Clean Energy UCITS ETF, or any other sort of ETF for that matter, and they are:
Through advisers
Talking to an adviser is a particularly good option if you are new to investing, especially if you don’t know the iShares Global Clean Energy ETF share price or what the current iShares Global Clean Energy ETF dividend was worth – if indeed, it was worth anything.
Through stockbrokers
Stockbrokers are professionals who buy and sell equities such as ETFs on stock exchanges on your behalf. Here in the UK, it is the London Stock Exchange (LSE). iShares ETFs like the iShare Global Clean Energy ETF can be purchased through a stockbroker during normal trading hours. Don’t forget, however, that you may have to pay brokerage and other fees.
If you need help locating a stockbroker, the LSE has a broker directory you can use.
Through regulated stock exchanges
Regulated stock exchanges, like the London Stock Exchange, are controlled marketplaces that stockbrokers use to trade various equities, including things like iShares Global Clean Energy ETF GBP funds.
Purpose-built platforms
You can also buy shares, bonds, ETFs, and sometimes iShare Global Clean Energy UCITS ETF funds through purpose-built online platforms. However, please bear in mind that some of these sites do not provide you with any kind of advice.
As time goes on and climate change considerations become even more significant, you might want to take action yourself and invest in portfolios like the iShares Global Clean Energy ETF fund, which will align you with the future of a low-carbon economy.
Final thoughts regarding investing and the iShares Clean Energy ETF
ESG investing doesn’t have to mean lower returns. With some funds at an all-time low, but with the forecast for recovery and growth in 2022 looking strong, now is the perfect time to buy in, providing you are not risk-averse. Investing for the long term and diversifying your portfolios are the recommended ways of lessening risk.
Although we’ve laid out various options for how to buy ESG ETFs, there is only one that offers advice that you can trust – going through a professional, independent wealth advisor.
FAQ
What is an iShares Global Clean Energy ETF?
iShares Global Clean Energy ETF is a clean energy exchange-traded fund that allows investors to gain exposure to global equities in the clean energy sector. The global equities include clean industry players focused on the production of technologies including solar panels, wind turbines, hydroelectric dams, and renewable products.
What sectors hold the most market share in iShares Global Clean Energy ETF?
The sectors with the most market shares in iShares Global Clean Energy ETF include semiconductor equipment, renewable electricity, electric utilities, electrical components & equipment, and heavy electrical equipment sectors.
When should I buy iShares Global Clean Energy ETF?
Buying an investment is a personal decision. The decision can be based on your financial situation, investment goals, and your personal beliefs. However, iShares Global Clean Energy ETF can be volatile, so investment for the short term may be hard to deal with.