Macro Research Does clean energy still deserve a p | FSMOne SG - Research Highlights

Macro Research


Does clean energy still deserve a place in investor portfolios?


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• Despite teething problems, the growth potential of the clean energy sector remains undeniable - underpinned by the focus on energy security.

• However, the sector does face tricky issues with no easy solutions. Sourcing of critical metals remain a challenge, and we also remain cognisant of the high valuation of the sector and the exposure to yet-to-be-profitable companies.

• The sector is very much a high-risk, high-reward play, and we recommend a diversified approach through the iShares Global Clean Energy ETF (NASDAQ: ICLN) for passive exposure or the BlackRock Global Funds - Sustainable Energy Fund for an active approach.

• Alternatively, investors investors can also consider the VanEck Rare Earth/Strategic Metals ETF (NYSE:REMX) or the Blackrock Natural Resources Growth & Income Fund, which provides exposure to commodity-linked equities - a key cog in the clean energy supply chain.


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: iShares Global Clean Energy ETF (NASDAQ: ICLN), BlackRock Global Funds - Sustainable Energy Fund, VanEck Rare Earth/Strategic Metals ETF (NYSE:REMX), Blackrock Natural Resources Growth & Income Fund