Clean energy ETFs comprise the stocks of companies involved in renewable energy sources like solar, wind, geothermal, and hydropower, as well as related technologies like energy storage and smart grids. Using the TipRanks ETF Screener, we have shortlisted two such ETFs with over 30% upside potential: the SPDR S&P Kensho Clean Power ETF (CNRG) and the ALPS Clean Energy ETF (ACES).
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Let’s take a closer look at these two ETFs.
SPDR S&P Kensho Clean Power ETF (CNRG)
The SPDR S&P Kensho Clean Power ETF seeks to track the investment results of the S&P Kensho Clean Power Index. CNRG has $211.85 million in assets under management (AUM), with the top 10 holdings contributing 29.33% of the portfolio. Further, the expense ratio of 0.45% is encouraging.
On TipRanks, CNRG ETF has a Moderate Buy consensus rating. This is based on the consensus rating of each stock held in the portfolio. Of the 52 stocks held, 30 have Buys, 18 have a Hold, and four stocks have a Sell rating. The average CNRG ETF price forecast of $84.08 implies a 31.1% upside potential from the current levels. The CNRG ETF is down 4.6% in the past three months.
ALPS Clean Energy ETF (ACES)
The ALPS Clean Energy ETF provides exposure to several U.S. and Canadian companies involved in the clean energy sector, including renewables and clean technology. The ETF seeks to track the performance of the CIBC Atlas Clean Energy Index (NACEX). ACES has $217.35 million in AUM, with its top 10 holdings contributing 51.83% of the portfolio. Its expense ratio stands at 0.55%.
On TipRanks, ACES ETF has a Moderate Buy consensus rating. Of the 40 stocks held, 28 have Buys, nine have a Hold rating, and three have a Sell rating. The average ACES ETF price target of $40.26 implies a 36.1% upside potential from the current levels. The ETF has declined 9.6% in the past three months.
Concluding Note
ETFs offer several benefits such as higher liquidity, low costs, and portfolio diversification. Investors looking for ETF recommendations could consider CNRG and ACES due to the solid upside potential expected by analysts.
