ICLN, QCLN, TAN: High Risk/Reward Renewable Funds

Summary

• The world is in the beginning stages of a historic shift from near total reliance on fossil fuels to greater renewable energy supply and consumption.
• The opportunity is similar to that of fossil fuels in the late 1800s. However, the transition will take decades; market sentiment and renewable equity valuations will vary over time.
• While oil and gas remain a sound investment, renewable energy offers greater growth potential.
• Investors need not harpoon Moby Dick or be Rockefeller. We can invest in renewable energy via the funds discussed here: ICLN, QCLN, and TAN.
• ICLN, QCLN, and TAN each follow renewable energy indexes but their holdings are concentrated in different sectors, market caps, and regions.

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Introduction

Historically, whale oil was a notable energy source, a lubricant, and a crucial manufacturing feedstock. Whale oil was used as lamp fuel for lighting; as a high pressure lubricant in machinery; and in the production of soap, varnish, leather, and linoleum. Additionally, whale oil was extremely important in the

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TAN, NETI, FAN, FLNC, REMX, DQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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