5 Best Renewable Energy Mutual Funds To Invest In
There are several best renewable energy mutual funds to invest in. The renewable energy industry continues to grow as more companies switch to solar, wind, and geothermal power. In fact, recent data projects the global renewable electricity capacity to rise nearly 65% by 2026. As an investor, you should familiarize yourself with the best renewable energy funds that provide exposure to different clean energy stages like hydrogen and geothermal. This way, you can invest in the best funds to generate long-term profits and revenue growth. Read on to learn about the several best renewable energy mutual funds to invest in today.
Climate Change Funds
First, you can invest in climate change renewable energy mutual funds. With these funds, you can put money into companies that work to prevent climate change. For example, invest in eco-friendly battery companies and hydrogen fuel cell manufacturers. You can also invest in agricultural and water companies in the renewable energy sector. Consider top investments such as graphite electrode and biofuel stocks. Since climate change is a global issue, you should invest in a company that splits your money between domestic and foreign stocks. Surely, climate change stocks are one type of renewable energy mutual funds you can invest in.
Next, you can invest in solar renewable energy mutual funds. Buy stock in solar panel manufacturers, electrical components and solar energy systems. Usually, these stocks have low expense ratios for higher investment returns. In addition, many solar companies offer higher ESG scores from their sustainability and risk mitigation. Just keep in mind that some solar funds have low diversification compared to other clean energy investment options. Therefore, confirm you’re willing to put your total investment into the company. Of course, consider investing in solar renewable energy mutual funds.
Wind Energy Funds
In addition, you can invest in wind renewable energy mutual funds. The best wind energy companies often offer ETFs in both pure play and diversified companies. When you invest, your money goes into organizations that focus on wind-related activities and other clean energy initiatives. Notably, some of the top wind energy ETFs have over 50 holdings. Of course, you can also invest in funds with fewer accounts. With high geographic diversity, expect to hold accounts from different countries and continents all around the world. For example, you can invest in China, Canada and Denmark with a single ETF. Plus, wind reduces business energy consumption and fights climate change internationally. In short, put your money into water renewable energy mutual funds.
Clean Power Funds
More so, you can invest in clean power renewable energy mutual funds.Typically, these ETFs invest in different companies using reputable indexes. Notably, these indexes leverage advanced algorithms, AI and quantitative weighing methodologies to capture leading companies that are driving innovation. With this tracking feature, you can invest in higher-performing funds. In addition, this methodology separates different holdings into core and non-core categories. Usually, core companies are over weighed in the ETF holding. Thus, they offer stronger clean energy exposure compared to non-core companies. Plus, they have an expense ratio of about .4%. Certainly, you should consider buying stock in the best clean power renewable energy mutual funds.
Electric Vehicle Funds
Furthermore, another renewable energy mutual fund you can invest in is electric vehicles. These ETFs that track the global index for top-rated businesses in the electric vehicle ecosystem. For example, some ETFs hold different auto manufacturers, battery companies and driving tech development companies. In addition, some major EV ETFs own shares in the world’s top lithium battery companies. Plus, many of these funds offer high annual returns of over 35%. This way, you can generate cash flow. Definitely, invest in electric vehicle renewable energy mutual funds.
There are several best renewable energy mutual funds to invest in. First, climate change stocks let you invest in companies that are working to minimize climate change effects. Next, invest in solar since these stocks offer low expense ratios and higher returns. In addition, wind energy funds let you invest in ETFs that hold shares in globally diverse companies. More so, invest in clean power funds to track the best energy stocks available in the market. Furthermore, electric vehicles let you purchase stocks and bonds in auto manufacturers, battery makers and technology developers. These are the best renewable energy mutual funds to invest in.