What’s the outlook for clean tech investing right now? Amid the ongoing government support for the space via the Biden Administration’s Inflation Reduction Act (IRA), segments like electric vehicles (EVs) and solar have been notable standouts recently. Given that government support and the overall picture, investors may want to revisit some of the firms doing well in the space available in an ETF like the ALPS Clean Energy ETF (ACES).
First off, investors may want to look at a recent upgrade for First Solar (FSLR). FSLR has risen 22.7% YTD and recently received an upgrade from a Morgan Stanley analyst. FSLR, an American solar panel manufacturer, provides utility-scale PV power plants as well as broader solar infrastructure support.
The firm’s upgrade owes to its substantial backlog which Morgan Stanley sees as supporting durable future earnings. FSLR has seen 30.5% quarterly year-over-year (YoY) revenue growth and has a solid 23.1 forward p/e ratio. ACES holds FSLR at a 4.8% weight per YCharts.
See more: “Q&A With SS&C ALPS Advisors Chief ETF Strategist Paul Baiocchi”
Eyeing Clean Tech Investing
ACES also holds two key EV firms in Tesla (TSLA) and Rivian (RIVN). TSLA has had an up-and-down year, yes, but remains a buy among some analysts especially given its current price. The firm’s Shanghai factory hit two million in car production and released its new Model 3 this month. It retains a long-term investment case despite a tough second quarter and sits at 6.4%.
Finally, the clean tech investing fund holds RIVN, meanwhile, as its largest-weighted stock. RIVN has slashed costs as it releases its new “Enduro” design in-house, a big step as it matures as a firm. The firm’s stock has risen about 31.3% YTD, producing an electric SUV and pickup truck on its “skateboard” platform that offers notable flexibility. The firm’s 50-day Simple Moving Average (SMA) also recently rose above its 200-day SMA, suggesting some positive momentum.
ACES itself charges 55 basis points (bps) for its approach, tracking the CIBC Atlas Clean Energy Index. ACES has returned 11% over the last five years, as well, providing investors with an intriguing route into long-term clean tech investing.
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