Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Since the beginning of 2024, while the overall U.S. stock market has achieved double-digit growth, clean energy stocks have not performed well. Some clean energy ETFs have not only underperformed the S&P 500 but have also declined in value. However, clean energy remains a long-term trend. Long-term investors should overlook short-term fluctuations and seize this rare contrarian buying opportunity.
As global demand for renewable energy rises, the clean energy market is expanding rapidly. Governments worldwide are committed to reducing carbon emissions and promoting renewable energy development, presenting tremendous growth potential for related companies. Numerous countries have introduced incentives and policies to support clean energy, such as the United States’ renewable energy tax credits and green infrastructure investments. Furthermore, technological advancements in the clean energy sector, such as solar, wind, and battery technologies, continue to improve efficiency and reduce costs.
Currently, U.S. interest rates are at a 22-year high, contributing significantly to the drop in clean energy stocks. Clean energy companies often have high leverage, with a higher debt-to-equity ratio than traditional energy firms, making high-interest rates a major obstacle to these stocks’ growth. However, as the Federal Reserve enters a rate-cutting cycle, U.S. clean energy investments are poised to benefit.
From a policy perspective, as Vice President Harris’s chances of winning increase, the U.S. stock market last week showed signs of forming the “Harris trade,” with long-stagnant solar and clean energy stocks beginning to rebound. Harris’s trade policies are expected to enhance the United States’ competitiveness in climate change and technological innovation, favoring stocks in clean energy, artificial intelligence, and autonomous driving technology.
In summary, the following U.S. clean energy ETFs are worth noting:
| Ticker | ETF Name | Total Assets (Million USD) | Year-to-Date Performance (%) |
| ICLN | iShares Global Clean Energy ETF | $2,123.29 | -7.77% |
| QCLN | First Trust NASDAQ Clean Edge Green Energy | $660.15 | -18.16% |
| PBW | Invesco WilderHill Clean Energy ETF | $294.46 | -35.50% |
| LCTD | BlackRock World ex U.S. Carbon Transition | $255.08 | 9.62% |
| ACES | ALPS Clean Energy ETF | $196.34 | -21.30% |
| CNRG | SPDR S&P Kensho Clean Power ETF | $170.46 | -13.74% |
| SMOG | VanEck Low Carbon Energy ETF | $140.84 | -4.85% |
| NETZ | TCW Transform Systems ETF | $139.01 | 22.23% |
| ACES | SPDR MSCI ACWI Climate Paris Aligned ETF | $132.43 | 15.04% |
| PBD | Invesco Global Clean Energy ETF | $101.95 | -17.23% |
| HYDR | Global X Hydrogen ETF | $36.63 | -32.47% |
| NBICT | Neuberger Berman Carbon Transition Infrastructure ETF | $31.86 | 16.76% |
| FRNW | Fidelity Clean Energy ETF | $27.27 | -10.66% |
| HDRO | Defiance Next Gen H2 ETF | $19.99 | -28.68% |
| GCLN | Goldman Sachs Bloomberg Clean Energy Equity ETF | $12.65 | 7.50% |
| VCLN | Virtus Duff & Phelps Clean Energy ETF | $5.21 | 4.35% |
| SOLR | Guinness Atkinson Funds SmartETFs Sustainable Energy II Fund | $4.92 | -2.89% |
| BNE | Blue Horizon BNE ETF | $2.66 | -6.20% |
