All eyes in the oil and gas industry are on the OPEC meeting that is set to take place today. Saudi Arabia and Russia are pushing to put an end to a production cut as both countries are eagre to ramp up production.
Meanwhile Patricia Espinosa, the top environment official at the UN, has warned OPEC that the drive for renewable energies could put their businesses in great risk in the coming decades. Espinosa has encouraged oil producers to reinvest profits in renewable technologies in order to hedge against the risks of climate change. The American Council for Renewable Energy (ACORE) has predicted that renewable energy investors will double to $1 trillion by 2030.
All of this should be setting off alarms for investors, especially those with stakes in the oil and gas market. The iShares S&P Global Clean Energy Index Fund (NASDAQ:ICLN) is a good option for those looking for exposure to this growing market, or even investors that are looking to diversify. The stock has plunged 9.4% over the past month as of close on June 21. This could present investors with a solid buy-low opportunity.
The top holding in the fund is the Austrian-based utility Verbund AG. In 2007 the company expanded its activities to renewable energy with a strong focus on wind power. Another top holding is Solaredge Technologies Inc., a U.S.-based provider of photovoltaics.
Shares of this ETF are up 7.5% year-over-year but the stock has been battered by news that China would halt its construction of solar wind farms. However strong investment across the board should not discourage investors. This ETF is worth a look this summer.
