Investing in Renewable Energy ETFs

The previous crude oil position wearing incident must still be on your mind. Negative oil prices are of course just a special situation that occurs before the expiration of the WTI crude oil contract in May, but with the increasing prominence of global environmental issues. The development of clean energy will have an increasing impact on the oil industry.

A report by the World Energy Council (WEC) says that if renewables, the Electric vehicles and other technologies continue to advance by leaps and bounds, and oil consumption will peak in 2030 and decline thereafter. Renewable energy is growing much faster than we expect, and as the technology matures and costs continue to fall, the business model is Becoming more accessible, renewables bucked the trend even in the first quarter of a raging neo-crown epidemic.

Policy Drives Clean Energy, U.S. Wind Projects Surge in First Quarter

Despite the new crown epidemic sweeping the world, but in the first quarter of this year, U.S. wind power project construction and power purchase agreements are record volumes.

According to the American Wind Energy Association (AWEA) recently released a report showing that in the first quarter of this year, the U.S. wind power new installed capacity of more than 1,800 megawatts, doubling from last year. At the same time, wind developers also started construction on about 4,124 MW of wind projects, according to Bloomberg data, making the first quarter U.S. under construction The total installed capacity of wind power projects was up 11% compared to the previous quarter. Also in the first quarter of this year, a record 2,859 MW of new power purchase agreements were signed quarterly for U.S. wind power.

The surge in U.S. wind projects is largely due to the fact that wind projects that started construction in the U.S. in 2016 need to be operational by the end of 2020 to qualify for U.S. tax credits, so the number of wind turbines loaded this year to meet the target will surge.

It is also estimated by the U.S. Energy Information Administration that total electricity consumption in the U.S. will fall by 3% this year, and demand for coal-fired generation will continue to take a hit, or drop by 20%; while at the same time, renewable generation will grow by 11%.

Over the past decade, clean energy has rapidly gained market share

Over the past decade, U.S. states have taken the lead in developing policies to support the development of renewable energy. Places like California and New York State have set a goal of achieving 100% renewable energy by 2050.

Renewable energy generation continues to grow, with Bloomberg data reporting that hydropower, wind, solar, biomass, and geothermal in 2019 In 2010, 18 per cent of electricity demand was met, compared to only 10 per cent in 2010. In 10 years, photovoltaic installations have increased 80-fold and wind power installations have more than tripled. Coal generation continues to decline, as does the number of coal-fired power plants scheduled for retirement over the next five years.

In April 2019, the U.S. Federal Energy Regulatory Commission (FERC) released data from its monthly report showing that renewable energy generation in the U.S. surpassed coal generation for the first time on record, providing 23% of the electricity compared to 20% for coal.

On the oil industry side, the outlook is bleak. The cost of solar modules has fallen by 50% since 2009, and the oil industry could soon be affected. As the cost of using electric vehicles falls and electric power is more economical than burning gasoline or diesel, by the end of the 2020s, oil The average daily use of fuel could be reduced by millions of barrels. The long-term outlook for oil is not good.

The Climate Group has also launched a global collaborative initiative, RE100, in partnership with the Carbon Disclosure Project, which unites highly influential global corporations such as Apple, Google, Microsoft and others to commit to the use of 100% renewable electricity worldwide by no later than 2050.

So, if you want to make value investments, you need to take a long-term view and focus on renewable energy investments. BlackRock New Energy Fund A2 is a good choice.

BlackRock New Energy Fund A2

BlackRock New Energy Fund A2 invests in the global renewable energy industry and has nearly $800 million in assets under management. At least 70% of the fund's positions are in related types of companies, including renewable energy and technology companies, alternative energy companies, and other businesses. and energy efficiency companies, among others. However, in keeping with the Fund's renewable energy investment objective, the Fund will not invest in any coal and oil and gas related companies that are truly Make it "new to the end"!

1. Produced by BlackRock, one of the world's largest asset management firms.

BlackRock (NYSE: BLK) is the largest publicly traded investment management group in the United States. Headquartered in New York, the Group serves clients from its offices in the US, Europe and Asia. January 2020 22, BlackRock was ranked 25th on the 2020 Fortune list of the world's most admired companies.

As one of the world's largest asset management companies, BlackRock's products are highly sought after in the world, and its fund managers are also leaders in the investment world, sought after by many institutional investors.

BlackRock's new energy fund, BlackRock New Energy Fund A2, is one of its most popular products. Total assets under management reached $6.47 trillion on March 31, 2009.

2. Outperformed the U.S. Energy Sector Index over the last five years.

BlackRock New Energy Fund A2 has gained over 30% in the last 5 years, beating the U.S. Energy Sector Index. It's also a better choice than XLE (U.S. Energy Sector ETF).

3) Balanced exposure to global renewables

The center of the world's renewable energy development is the United States, which is why BlackRock's New Energy A2 Fund has a position in U.S. companies of More than 50% of the fund is allocated to renewable energy, and as developed countries in Europe have strong policies towards renewable energy, the fund also has a certain allocation of proportion of European companies. The top ten holdings are dominated by wind and solar energy companies, which are also the current giants of renewable energy.