QCLN: Leading Renewable Energy ETF For Speculative Investors

Summary

• QCLN is a leading Renewable Energy ETF with $2 billion in assets under management and a 0.58% expense ratio. Fees seem inconsequential, given how the ETF gained 149.50% in 2020.
• QCLN has an estimated 31.57% sales growth rate. Furthermore, it trades at 11.62x last year's sales and has a 5.46/10 Profitability Score, lower than what most small-cap growth ETFs offer.
• In short, QCLN has speculation written all over it. It should not form a significant part of your portfolio but may be worthwhile if positive sentiment returns to Wall Street.
• That's not my position, so I'm remaining neutral. However, this article examines the fundamentals for three alternatives (CNRG, ACES, and CTEX), and concludes QCLN is likely the best of the bunch.

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Investment Thesis

Today, I will review the First Trust NASDAQ Clean Edge Green Energy Fund (NASDAQ:QCLN), one of a handful of renewable energy ETFs currently trading on U.S. exchanges. I was nervous about what I'd find

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY 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.