- Oil prices are sinking and energy stocks are tanking the most among the S&P 500's 11 sectors Monday amid a broad market sell-off -- and surprisingly, green energy isn't providing much of a refuge.
- Many green-energy stocks are falling for the day, and ecofriendly ETFs are some of the the worst year-to-date performers among the energy sector's 66 ETFs and 13 sub-sectors.
- While green-energy ETFs have great one- and five-year performance records, they've been hurting since the year began.
- Cowan stated in a recent note: “Investor enthusiasm for green investments has heightened in recent times, with a particular focus on solar as conversations are becoming reminiscent of 4Q20.”
- Here's a rundown of the energy segment's five worst-performing subsectors year to day, along with the poorest performing exchange traded funds in each. All figures are per etfdb.com, and the rundown excludes leveraged and inverse ETFs:
Fifth-Worst Segment: Solar Energy
- This segment is up just 2.35% year to date on average among the two ETFs offered, badly trailing the S&P 500's roughly 15% YTD gain.
- The poorest performer of the two is the Invesco Solar ETF (NYSEARCA:TAN) which is 21.54% YTD.
- TAN’s top three holdings are in Enphase Energy (11.34%), SolarEdge Technologies (10.01%) and Sunrun (7.18%).
- On the plus side, TAN's one-year performance is is +88.04%, while its five-year gains total 277.13%.
Fourth-Worst Segment: Wind Energy
- Wind Energy is 10.3% YTD, but that's all attributable to First Trust Global Wind Energy ETF (NYSEARCA:FAN), which is the sector's only ETF.
- That said, FAN looks much better longer term. From a one-year performance standpoint, the ETF is +31.28%, and on a five-year return, FAN is +61.89%.
- FAN’s top three holdings are Vestas Wind Systems A/S (8.42%), Northland Power (7.78%) and Siemens Gamesa Renewable Energy (7.26%).
Third-Worst Segment: YieldCos
- YieldCos are part of an emerging asset class that focuses on returning cash flows from renewable energy assets to shareholders.
- The space only has one ETF so far - the Global X Funds Global X Renewable Energy Producers ETF (NASDAQ:RNRG) - which is -11.03% YTD.
- Break down RNRG’s holdings and investors will see the top three holdings are Verbund AG (6.89%), Centrais Eletricas Brasileiras (5.88%) and Brookfield Renewable Partners (5.63%).
Second-Worst Segment: Clean Energy
- This energy segment is represented by seven different exchange traded funds that have a -8.52 average YTD return.
- Invesco WilderHill Clean Energy ETF (NYSEARCA:PBW) is the segment's worst-performing fund, as it is -21.86% YTD.
- But in the longer view, PBW is +69.67% in one-year performance and +311.56% over five years.
- PBW's top three holdings are JinkoSolar Holding Co Ltd ADR (2.42%), Maxeon Solar Technologies (1.92%) and Azure Power Global (1.91%).
- No. 1 Worst Performing Segment: Cleantech
- Cleantech has one ETF - The exchange traded fund that represents the segment - which is -14.10% YTD.
- That said, ERTH is +22.94% on a one-year basis and +109.59% over five years.
- ERTH’s top three holdings are NIO Inc (6.94%), Tesla (5.19%) and Vestas Wind Systems (4.64%).
- Here's a look at how ERTH, PBW, RNRG, FAN and TAN fared against each other on a one-month chart:
- Looking at the longer term, all of these ETFs funds except RNRG have outperformed the SPDR S&P 500 Trust ETF (NYSEARCA:SPY) over the past three years:
- And on the other end of the energy spectrum, here are the six hottest segments and top ETFs in the U.S. energy sector.