The growing preference for renewable energy sources presents significant growth opportunities for the clean energy sector. Therefore, investing in ETFs that focus on this sector can capture these emerging opportunities. Using the TipRanks ETF Screener, we have shortlisted two clean energy ETFs with over 20% upside potential: Fidelity MSCI Energy Index ETF (FENY) and iShares U.S. Energy ETF (IYE).
Let’s take a closer look at what Wall Street thinks about these two ETFs.
Fidelity MSCI Energy Index ETF (FENY)
The FENY ETF aims to track the performance of the U.S. energy sector, investing at least 80% of its assets in companies included in the MSCI USA IMI Energy Index. FENY has $1.58 billion in assets under management (AUM), and its expense ratio stands at 0.08%. Interestingly, the FENY ETF has gained 3.3% so far this year.
Turning to Wall Street, FENY ETF has a Moderate Buy consensus rating based on 85 Buys, 22 Holds, and three Sells assigned in the last three months. At $29.96, the average FENY ETF price target implies a 27.77% upside potential.
iShares U.S. Energy ETF (IYE)
At least 80% of the IYE ETF’s assets are invested in companies within the energy sector of the U.S. stock market. It aims to match the performance of the Russell 1000 Energy RIC 22.5/45 Capped Index, representing this sector. Further, IYE has $1.19 billion in AUM. Meanwhile, the ETF’s low expense ratio of 0.39% is encouraging. The IYE ETF has generated a return of 3.4% year-to-date.
Overall, the IYE ETF has a Moderate Buy consensus rating based on 38 Buys and seven Holds assigned in the last three months. At $57.17, the average IYE ETF price target implies a 26.84% upside potential.
Concluding Thoughts
ETFs are a low-cost, diversified, and transparent way to participate in the market. These benefits, along with the over 20% upside potential expected by analysts in FENY and IYE ETFs, make them worth considering by investors.
