Is ICLN iShares Global Clean Energy ETF A Buy?
πππICLN $iShares Global Clean Energy ETF(ICLN)$ seeks to track the investment results of an index composed of global equities in the Clean Energy Sector. In just 1 trade I gain access to the best and strongest companies in the world that produce energy from solar, wind and other renewable sources.
The Top 10 holdings include $First Solar(FSLR)$ Iberdrola SA, SSE PLC, Vestas Wind Systems, $Enphase Energy(ENPH)$ EDP Energias De Portugal SA, $China Yangtze Power Co.,Ltd.(600900)$ , Chubu Electric Power, Orsted and Suzlon Energy.
The Top 10 holdings weightage is 50.5%. Total number of holdings is 101. The expense ratio is 0.41%, one of the lowest compared to competing ETFs. Dividends are paid every 6 months. The current dividend yield is 1.49%. ICLN goes ex dividend on December 17 2024.
First Solar and Enphase Energy are 2 of the largest Solar Energy companies in the US.
Iberdrola SA is a Spanish global clean energy leader, the leading wind power producer and one of the largest electricity companies in the world in terms of market capitalisation. Iberdrola has more than 180 years of history in the business with locations in Spain, United Kingdom, US, Mexico, Brazil, France, Germany and Australia. Apart from wind power energy generation, Iberdrola is also into hydroelectric, solar and nuclear energy generation.
SSE is a multinational energy company headquartered in Perth, Scotland. Its businesses are engaged in onshore and offshore wind, hydro power, flexible thermal generation, solar and battery technologies, electricity transmission and distribution and localised energy systems.
China Yangtze Power is the largest listed power company in China and the world 's largest listed hydropower company. It currently owns all the power generation assets of 6 hydropower stations on the main stream of the Yangtze River. They are the Three Gorges, Gezhouba, Xiluodu, Xiangjiaba, Baihetan and Wudongde with an installed capacity of 71.685 GW.
These are just some of the largest clean energy companies in ICLN.
ICLN's biggest region allocation is the US at 35.8%, followed by Europe at 30.8% and Asia Pacific at 24%.
ICLN ETF is the largest ETF in the Clean Energy Sector with Assets Under Management of USD 1.94 billion. It is managed by BlackRock, the world's largest fund manager under the iShares Brand.
Performance wise, ICLN has been oversold and undervalued. Its share price is down 14% year todate. In 2023, ICLN has dropped 0.3% but if we look back 5 years ago, ICLN is up 21%.
Wall Street Analysts are bullish on ICLN withBuy rating, an average Target price of USD 17.61, an upside potential of 33.8%, according to 143 analysts surveyed by Tipranks.
I have just started to invest in ICLN as I believe that it has lots of exponential growth ahead as the world transitions to clean energy. At the last closing price of just USD 13.16, it represents excellent value for my money.
Clean Energy is anticipated to become the predominant power source globally within the next 30 years. This shift is driven by supportive policies, consumer demand, cost declines and recognition of the finite nature of fossils fuels.
That is why I believe that $iShares Global Clean Energy ETF(ICLN)$ is a fantastic Buy!
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