ESG Fund stock picks covered include Invesco Solar ETF, iShares Global Clean Energy ETF, ALPS Clean Energy ETF, iShares ESG Aware MSCI USA ETF, Xtrackers S&P 500 ESG ETF, First Trust Water ETF, SPDR SSGA Gender Diversity Index ETF, Sunnova Energy International Inc., Canadian Solar Inc., SolarEdge Technologies Inc., First Solar, and Enphase Energy. More
Transcript & Links, Episode 50, January 29, 2021
Hello, Ron Robins here. Welcome to podcast episode 50 published on January 29, titled “ESG Fund Stock Picks Under Biden”— 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, quotes, and bonus material – at this episode’s podcast page located at investingforthesoul.com/podcasts.
1. ESG Fund Stock Picks Under Biden
This first article suggested the title for the podcast. It’s titled 7 ESG Funds to Buy Under a Biden Administration by Debbie Carlson and was on USNews.com.
I’ll mention each of the seven funds, followed by some brief comments by Ms. Carlson on each one.
“1) Invesco Solar ETF (TAN)
ETFs that focus on renewable energy already saw a strong run up in 2021. Todd Rosenbluth, senior director of ETF and mutual fund research for CFRA, expects that to continue… Invesco Solar is focused directly on that industry with its mix of technology and semiconductor equipment firms… (The stock) more than doubled in price in 2020.
2) iShares Global Clean Energy ETF (ICLN)
… gives investors diversification at both the geographic and sector level, Rosenbluth says, and includes companies in both the wind and solar energy industries… (It’s) geographic breakdown is nearly a third in the U.S., but it also includes companies based in China, New Zealand, Spain and Canada. (The) iShares Global Clean Energy ETF has seen… a nearly 140% return in 2020.
3) ALPS Clean Energy ETF (ACES)
… gives investors exposure to clean energy companies such as SunPower Corp. (SPWR), but it also holds electric vehicle maker Tesla (TSLA). (It’s) a newer ETF, having debuted in 2018, but it already has more than $750 million in assets under management.
4) iShares ESG Aware MSCI USA ETF (ESGU)
Investor demand for broadly diversified ESG ETFs grew in 2020, and Rosenbluth says he expects that to continue in 2021… This iShares fund includes both Apple (AAPL) and Microsoft Corp. (MSFT) among its top holdings, which are considered strong corporate citizens from an ESG perspective, although he points out that those companies’ investment merit isn’t necessarily driven by ESG revenue growth.
5) Xtrackers S&P 500 ESG ETF (SNPE)
Daniel Milan, managing partner at Cornerstone Financial Services, likes the Xtrackers S&P 500 ESG ETF for how well it mirrors the S&P 500. (It) uses an exclusionary screen to keep out tobacco firms and controversial weapons makers, (and) those which score low on the United Nations Global Compact ranking or companies in the bottom 25% of ESG ratings within their industry.
6) First Trust Water ETF (FIW)
Milan says that although First Trust Water ETF doesn’t have ESG in its name, for people interested in the water sector, this is his choice. The fund holds 36 of the largest water companies in the U.S., Canada and Brazil ranked by market cap and weighted equally within five tiers.
7) SPDR SSGA Gender Diversity Index ETF (SHE)
There may be more focus on gender diversity, especially with Nasdaq’s push to enforce gender diversity in corporate boardrooms for the companies that are listed on its exchange… Top holdings include PayPal Holdings (PYPL) and Netflix (NFLX).” End quotes.
2. ESG Fund Stock Picks Under Biden
You know, I don’t choose the sectors to follow. I let what the analysts write in their news flows do that. And the analysts are just totally in love with solar energy. So, here’s yet another post on that sector, titled, 10 Best Solar Energy Stocks to Buy Now. It’s written by Ozgur Yalcin and appeared on Yahoo! Finance. He used solar stocks most favored by hedge funds as the basis for selection.
Here are the stocks each followed by some brief comments from Mr. Yalcin. Incidentally, the stock gains he mentions of this year I believe refer to 2020.
10) Hannon Armstrong Sustainable Infrastructure (NYSE: HASI)
Hannon Armstrong is a US-based large-cap investment company solely dedicated to investments in climate solutions, providing capital to companies in energy efficiency, renewable energy, and other sustainable infrastructure markets. The business currently has more than $6 billion in managed assets with 208 total investments. The company’s key markets are distributed solar systems, storage, onshore wind and solar land grid connections, stormwater remediation, (and) ecological restoration…
Stock gain this year is 116.9% and the compound 3 year revenue growth rate is 34.4%.
9) Sunpower Corp (NASDAQ: SPWR)
… is a US-based large-cap company that designs all-in-one residential and commercial solar system solutions backed by personal customer service… Stock gain this year is 290.7% and the compound 3 year revenue growth rate is -3.6…
Moreover, Goldman Sachs recently lifted its price target for Sunpower stock from $23 per share to $33 per share, another reason behind the latest stock rally.”
8) Daqo New Energy (NYSE: DQ)
… is a China-based large-cap company (and a) leading manufacturer of high-purity polysilicon for the global solar PV industry. The company is known for high-purity polysilicon production with a capacity of 70.000 metric tons per year.
Stock gain this year is 660.8% and the compound 3 year revenue growth rate is 29.7%.
7) Clearway Energy Inc (NYSE: CWEN)
… is a North America-based large-cap… publicly-traded energy infrastructure (company)… focused on modern, sustainable, and long-term contracted assets across North America…
Stock gain is 72.7% and the compound 3 year revenue growth rate is 4.1%.
6. Sunnova Energy International Inc (NYSE: NOVA)
… is a US-based large-cap company that provides residential solar and energy storage services, with customers across the US and its territories. With home solar systems, battery storage, roof replacement, monitoring, maintenance, and financing options, the company has more than 100k customers.
Stock gain 349.5% and the compound YoY revenue growth rate is 27%.
5) Canadian Solar Inc (NASDAQ: CSIQ)
… is a Canada-based large-cap global company that produces and sells solar photovoltaic products and provides energy solutions as well as one of the largest solar power plant developers globally… The company reaches 150 countries with 17 manufacturing facilities. In 2021, it (expects)… a 10% growth in shipment capacity.
Stock gain 148.3% and the compound 3 year revenue growth rate is 4.4%.
4) Sunrun Inc (NASDAQ: RUN)
… business focuses on solar panel sales, storage systems, and financing… Sunrun Inc has over 500,000 customers and has sold its solar service in 22 US states.
Stock gain 526.7% and the compound 3 year revenue growth rate is 19.1%.
3) SolarEdge Technologies Inc (NASDAQ: SEDG)
… is an Israel-based but US-domiciled large-cap smart solutions company that provides power optimizers, solar inverters, and monitoring systems for photovoltaic arrays.
Stock gain 231.3% and the compound 3 year revenue growth rate is 42.1%.
2) First Solar (NASDAQ: FSLR)
… is a US-based large-cap global company that develops, finances, engineers, constructs, and currently operates many of the world’s largest grid-connected PV power plants. Stock gain 84.6% and the compound 3 year revenue growth rate is 6.1%.
1) Enphase Energy (NASDAQ: ENPH)
The Company delivers solutions to residential and commercial solar PV systems as well as storage, accessories, and management app programs. (Enphase) revolutionized the solar industry with its microinverter technology and produces a fully integrated solar-plus-storage solution.
Stock gain 573.3% and the compound 3 year revenue growth rate is 34.3%.” End quotes.
3. ESG Fund Stock Picks Under Biden
From The Motley Fool site, I found this post, titled, 3 Energy Stocks Positioned to Win in a Renewable Power World. It has three authors each recommending a major energy producer.
He says, “The key, however, is that going forward only 35% to 40% of the capital spending budget is earmarked for oil. The rest is split between its transition and growth businesses. This is a fairly aggressive plan that will work out particularly well if the world makes a decided shift toward renewable power.
Shell appears to be in a better position to transition to the clean energy future while milking its cash cow oil business for as long as it can manage.” End quote.
Matt DiLallo likes Xcel Energy (NASDAQ: XEL)
Mr. DiLallo says, “It aims to deliver 100% carbon-free electricity by 2050… The company intends to retire all its coal power plans by 2030 and replace that capacity with cleaner natural gas and renewable energy. Meanwhile, it’s investing in emerging technologies like green hydrogen to achieve its ambitious multi-decade plan to produce emission-free energy.” End quote.
Neha Chamaria’s pick is NextEra Energy (NYSE: NEE)
Neha says, “If you’re looking to invest in renewables, look no further than NextEra Energy. It is, after all, the world’s largest producer of energy from solar and wind.” End quote.
Well, these are my top news stories with their stock and fund tips — for this podcast: “ESG Fund Stock Picks Under Biden.“
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© 2021 Ron Robins, Investing for the Soul.