This is the best known and most widely held of the ETFs surveyed here.
And finally one ETF with a more diversified and novel approach. Then the contested area - at least by ESG investors - of battery technology and its value chain. First, there is the iShares ETF and its two main rivals in Morningstar's Alternative Energy Equity sector - each of which, interestingly, tracks a different index. We've picked out some ETFs that are available on UK platforms, to compare their performance and how they work. But with huge potential comes the potential for huge disappointments. 'One reason why these stocks did so well in 2020 is that no one really knows how big this sector can be or will be,' he adds.
And so, any such ETF should remain a satellite rather than a core holding - five per cent of a portfolio at the most. However, as with all investing, a long-term perspective is essential, and holders of adventurous thematic funds must expect short and medium-term volatility.ĭamien Lardoux, Head of Impact Investing at EQ Investors, warns that while themes like clean energy might seem very attractive to retail investors, they need to be able to digest sudden swings. The ETF fell more than its peers, plunging from 1,425p in early January to below 900p in early March, before a partial recovery to around the 960-965p mark currently.