Articles reviewed: the 7 Best Renewable Energy Stocks and ETFs. Better Buy: Plug Power vs. Canadian Solar. 4 ESG Funds to Buy for Purpose and Profit. How sustainable are Wealthsimple’s new socially responsible funds? US SIF Foundation Launches Sustainable Investing Course for Individual Investors. A reminder about my DIY Ethical-Sustainable Investing Pays Tutorial! And more

PODCAST: Best Renewable Energy Stocks and ETFs. More…

Transcript & Links, Episode 37, July 31, 2020

Hello, Ron Robins here. Welcome to podcast episode 37 published on July 31 titled “Best Renewable Energy Stocks and ETFs. More…”— and presented by Investing for the Soul. investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.

Remember that you can find a full transcript, links to content – including stock symbols and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.

And Google any terms that are unfamiliar to you.

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1) Best Renewable Energy Stocks and ETFs

I start with the recommendations of a usnews.com piece that I found on the wtop.com site. It’s titled 7 Best Renewable Energy Stocks and ETFs. Here are the recommendations each followed by a brief quote from the article.

Renewable Energy ETFs

1) Invesco Solar ETF (TAN) offers exposure to global technology and utilities stocks that can benefit from demand for solar… The Invesco Solar ETF tracks two dozen solar energy companies such as First Solar (FSLR) and SolarEdge Technologies (SEDG)… Since TAN owns fewer companies, the price can be more volatile than other renewable energy funds with a larger number of companies.

2) iShares Global Clean Energy ETF (ICLN). This ETF tracks the S&P Global Clean Energy Index and includes companies that produce solar, wind and other renewable power sources globally…

Renewable Energy Stocks

3) NextEra Energy (NEE) is a utility company that owns Florida Power & Light Co. and Gulf Power Co., along with wind and solar assets… NextEra Energy trades at a 50% premium compared with regulated utilities on 2022 price to earnings, ‘implying that investors are willing to assign a significant growth premium to the management team,’ says Michael Underhill, chief investment officer at Capital Innovations in Wisconsin.

4) Vestas Wind Systems (VWDRY) is a Danish company that designs, manufactures and installs wind turbines globally… ‘As consumers migrate towards renewable energy sources, it may change the composition of inflation, reducing the power of traditional oil and energy to hedge inflation, so investors will need renewable energy to hedge against inflation in the long term,’ says Jodie Gunzberg, managing director, chief investment strategist at Morgan Stanley, Wealth Management Institutional

5) Brookfield Renewable Partners (BEP) Brookfield Renewable Partners is a global renewable power platform with 19,300 megawatts of capacity and 5,288 generating facilities in North America, South America, Europe and Asia. The company is one of the largest owners of renewable assets globally, 75% of which is hydro, and generates a 4.5% dividend yield with a 5% or higher dividend growth.

6) Iberdrola (IBDRY) is a Spanish utility company that owns wind assets. The company announced in June that it will invest $4.5 billion during the next four years in France to develop renewable energy, including onshore wind, solar photovoltaic and offshore wind capacity auctions. The company is a ‘best-in-class wind developer company,’ Underhill says.

7) ALPS Clean Energy ETF (ACES) invests in the CIBC Atlas Clean Energy Index, a benchmark index. The three top holdings are Cree (CREE), Tesla (TSLA) and Enphase Energy (ENPH) as of May 31.” End quotes.

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2. Best Renewable Energy Stocks and ETFs

Continuing on the subject of renewable energy, Scott Levine has written a post on The Motley Fool site titled Better Buy: Plug Power vs. Canadian Solar.

Here are some quotes that might interest you concerning his discussion.

“Skyrocketing more than 180% year to date, shares of Plug Power (NASDAQ: PLUG) have soared in 2020, extending the 149% run-up they experienced in 2019. Why? Primarily, investors are growing more confident that the company is on track to meet management’s 2024 projection of generating sales of $1.2 billion, operating income of $170 million, and adjusted EBITDA of $200 million.

Fortifying its position as an industry leader, Plug Power completed two acquisitions in June that will help the company become a formidable competitor in hydrogen generation…

Unlike its bankrupt peers… Canadian Solar (NASDAQ: CSIQ) has prospered over the past two decades, and investors are confident that plenty of sunny days remain…

The company’s supporters will also point to Canadian Solar’s burgeoning energy business, which deals in the development of solar power projects. Currently, it has 1 gigawatt-peak (GWp) in operation, with 3.7 GWp in backlog and 12 GWp in the pipeline. Additionally, Canadian Solar’s focus on the energy storage market is also a source of enthusiasm since the company has 2,820 megawatt-hours of storage projects in the pipeline…

Putting the price tags into perspective

… For Plug Power, which is unprofitable and doesn’t generate positive operating cash flow, the traditional valuation metrics are unhelpful. Instead, we can assess the stock in terms of sales, and in doing so we find that it trades at a multiple of 9.4 — well above its five-year average ratio of 3.6, and considerable higher than the S&P 500 P/S ratio of 2.3… Plug Power seems to be too richly valued at this point.

Canadian Solar, on the other hand, currently represents a bargain. Shares are trading at 2.3 times operating cash flow, which is a discount to its five-year average multiple of 4.1.” End quotes.

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3. Best Renewable Energy Stocks and ETFs

This article is by a Zacks analyst familiar to you, Nitish Marwah. His latest post is titled 4 ESG Funds to Buy for Purpose and Profit and can be found on Nasdaq.com.

As usual, I’ll say the fund name and follow it with brief comments by the author.

“1) New Alternatives Fund Class A (NALFX) fund invests in companies that contribute to a sustainable environment. The fund seeks long-term capital growth with income as its secondary objective…

The New Alternatives Fund Class A has a Zacks Mutual Fund Rank #1… The fund has three and five-year returns of 10.4% and 8.8%, respectively.

2) TIAA-CREF Core Impact Bond Fund Retail Class (TSBRX) fund invests the lion’s share of its assets in bonds while favoring long-term total return through income and capital growth. The fund gives special consideration to companies that satisfy its ESG criteria…

The TIAA-CREF Core Impact Bond Fund Retail Class has a Zacks Mutual Fund Rank #2… The fund has three and five-year returns of 4.6% and 3.9%, respectively.

3) Fidelity Select Environment and Alternative Energy Portfolio (FSLEX) fund aims for capital appreciation. The product invests the majority of its assets in securities of companies that provide business services related to alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies or other environmental support.

The Fidelity Select Environment and Alternative Energy Portfolio fund has a Zacks Mutual Fund Rank #2… [It] has three and five-year returns of 2% and 6.4%, respectively.

4) Pax Ellevate Global Women’s Leadership Fund Individual Investor Class (PXWEX) seeks returns on investment that exceed the price and yield performance of the Pax Global Women’s Leadership Index…

The fund has three and five-year returns of 6.9% and 7.4%, respectively.” End quotes.

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4. Best Renewable Energy Stocks and ETFs

Tim Nash publishing on the Corporate Knights site has another outstanding analysis. Mr. Nash reviews two Toronto Stock Exchange ETF’s in an article titled How sustainable are Wealthsimple’s new socially responsible funds? (Now as ETFs, they’re generally available for purchase globally.)

Here are some of his remarks.

“I wasn’t impressed when Wealthsimple launched its first socially responsible portfolio in March 2016… Wealthsimple’s updated socially responsible portfolio is chiefly made up of two new ETFs: the Wealthsimple North America Socially Responsible ETF (ticker: WSRI) that includes Canadian and U.S. companies, and the Wealthsimple Developed Markets ex-NA Socially Responsible ETF (ticker: WSRD) that includes companies from Europe, Japan and Australia.

The new ETFs explicitly exclude weapons manufacturing, defence contracting, tobacco, alcohol, adult entertainment and any company found to be in violation of the UN Global Compact (principles covering human rights, child labour and corruption). The new funds also exclude companies related to oil, gas and coal, making them fossil-fuel free…

Does the new portfolio, as advertised, let people ‘invest in a better world’? Well, not quite… But the portfolio has lacklustre exposure to companies whose main business is providing sustainable solutions such as renewable energy, electric cars, green buildings and energy efficiency – all themes that are outperforming with good long-term growth prospects…

For the time being, investors who want to invest in sustainable solutions will need to incorporate additional products like green ETFs or community bonds if they want their investment to have a positive impact.” End quotes.

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Finally, for those of you new to ethical and sustainable investing, particularly if you’re an American, check this out: US SIF Foundation Launches Sustainable Investing Course for Individual Investors. Quote “The course, which takes approximately 30 minutes to complete, provides a brief overview of the development of sustainable investing and summarizes the investment options and strategies available.” End quote.

However, if you want help creating an ethical and sustainable portfolio, see my DIY Ethical-Sustainable Investing Pays Tutorial.

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Ending comments

Well, these are my top news stories and tips for this podcast: “Best Renewable Energy Stocks and ETFs. And More…”

And to get all the links, stock symbols, and more, or to read the transcript of this podcast and with additional information too, please go to investingforthesoul.com/podcasts and scroll down to this episode.

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Contact me if you have any questions.

Stay well, healthy, and wise!

Thank you for listening.

Talk to you again on August 14. Bye for now.

© 2020 Ron Robins, Investing for the Soul

you have any questions.

Stay well, healthy, and wise!

Thank you for listening.

Talk to you again on August 14. Bye for now.

© 2020 Ron Robins, Investing for the Soul